1113 ET - Dollar General is working to improve margins against some cost headwinds, including ongoing inflation in retail wage rates, CFO Kelly Dilts says on a call with analysts. The company expects wage inflation to continue at 3.5% to 4% going forward, and its operating leverage could come under additional pressure by a return to more normalized short-term and long-term incentive compensation following two years of lower-than-average payouts, the CFO says. The company also faces ongoing headwinds from depreciation and amortization after ratcheting up its capital spending in recent years, at a time when building materials were inflated, Dilts says. (dean.seal@wsj.com)
(END) Dow Jones Newswires
March 13, 2025 11:13 ET (15:13 GMT)
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