Why did DG's Q2 2025 EPS fall short of forecasts?

The EPS of Dollar General (DG) for Q2 2025 fell short of forecasts due to several key factors: 1. **Decrease in Profit Margin**: The profit margin for DG decreased significantly, from 4.8% in Q2 2024 to 3.7% in Q2 2025. This decline was primarily driven by higher expenses, which ate into the company's net income. 2. **Higher Expenses**: Dollar General experienced an increase in the cost of goods sold and selling, general & admin expenses. These increased expenses squeezed the profit margin and led to a decrease in net income. 3. **Store Closures and Portfolio Review**: DG closed 96 Dollar General stores and 45 Popshelf stores, as part of a portfolio optimization review, which resulted in $232 million in charges absorbed in Q4 2024. These charges had a negative impact on the operating profit and EPS. In summary, the EPS of DG for Q2 2025 fell short of forecasts due to a decrease in profit margin, higher expenses, and store closures. These factors combined to reduce the company's net income and resulted in an EPS that missed analyst expectations.