Two major US retailers are set to release earnings reports this week, with Wall Street focusing on how lower-income consumer pressures and discretionary spending trends are shaping results.
Dollar General reports Q2 earnings Thursday morning. Wall Street expects EPS of $2.02, up from $1.86 a year earlier, on revenue of $11.20 billion compared to $10.72 billion in Q2 2025. The stock trades around $122.58, down nearly 7% year-to-date, with retail sentiment rated “Very Negative” by TipRanks.
Same-store sales are the key metric, with Oppenheimer calling for at least 2.5% growth and Wolfe Research at 3.0%. Management is widely expected to reaffirm full-year 2026 guidance rather than raise it, largely because higher gas prices hit the chain’s low-income core customers. Dollar General is opening 450 stores this year, and investors want that expansion to translate into profit, not just revenue. A new CEO is expected in 2027, adding longer-term uncertainty.
Gap reports Thursday after the close, with analysts expecting EPS of $0.48 to $0.49 on revenue of $3.7 billion. Gap stock jumped 6% to $21.36 on Tuesday and options traders leaned bullish, with 20,328 calls versus 13,242 puts. Goldman Sachs reiterated a Buy rating but trimmed its price target to $25, while the broader consensus target is $25.58. Analyst sentiment is split, with half bullish and half at Hold. Key positives include resilient discretionary spending and a DoorDash delivery partnership for back-to-school sales; negatives include soft apparel numbers from Target and TJX.
Neither report is directly tied to cryptocurrency markets, but the results may inform broader consumer spending narratives that influence risk sentiment across asset classes.
