I'll publish a complete update on $DG on Tuesday morning (Monday is a holiday in the U.S.), but one quick thought: I'm pretty surprised to see them reiterate the FY22 EPS guide (I think the market is as well, which is why shares are up 10%+ premarket). We saw significant P&L pressure on both GM's and SG&A this Q (with EBIT -18% YoY), which leaves a lot of work over the remainder of the year to get to DD EPS growth (53rd week helps).

On the other hand, $DG looks well positioned IMO to navigate through this period (relative to retail peers; I'll need to update $WMT, $DLTR, and $FIVE as well). As shown above, they lagged by a wide margin throughout FY21, largely due to business mix. Based on commentary from Walmart and Target, I think we'll see some of that reverse going forward. (A lot of the general merchandise categories that $DG has a small / no presence in are rolling over.)

As always, it's important to keep short-term results in the proper context (assuming you're a long-term investor, as I am). The underlying TSR algorithm for $DG remains in tact, and pOpshelf, Mexico, etc., are important additions to the thesis (optionality). FWIW, the equity traded at ~17x forward in advance of the Q1 results.