How did DG's revenue and expenses trend in Q4 2025 compared to previous quarters?

Dollar General's (DG) revenue and expenses in Q4 2025 are not available. However, trends in SG&A expenses and operating profit in previous quarters provide insights into the company's financial performance. 1. **SG&A Expenses**: SG&A expenses were 26.5% of sales in Q4, representing a significant increase of 294 basis points. This was due to impairment charges totaling $214 million related to the Portfolio Optimization Review. 2. **Operating Profit**: Operating profit decreased by 49% to $294 million in Q4, including the negative impact of approximately $232 million from the portfolio review. As a percentage of sales, operating profit was 2.9%, a decrease of 302 basis points. 3. **Net Interest Expense**: Net interest expense decreased to $66 million in Q4, compared to $77 million in the same quarter of the previous year. 4. **Effective Tax Rate**: The effective tax rate for Q4 was 16.2%, down from 20% in the same quarter of the previous year, primarily due to the effect of certain rate-impacting items on lower earnings before taxes. 5. **EPS**: EPS decreased by 52.5% to $0.87 in Q4, including a negative impact of approximately $0.81 per share from the portfolio review. In conclusion, DG's Q4 2025 financials showed significant challenges with increased SG&A expenses, operating profit decline, and lower EPS. The company is facing headwinds from retail wage rate inflation, incentive compensation, and depreciation, which are expected to continue into 2025. However, DG is taking actions to reduce controllable expenses and expects to deleverage in 2025. The company's long-term financial framework targets annual net sales growth of 3.5% to 4% and same-store sales growth of 2% to 3% beginning in 2026, indicating a strategic focus on future growth.