TLDR
- Dollar General posted Q1 EPS of $2.00, beating the $1.89 analyst estimate
- Revenue rose 3.4% to $10.79 billion, roughly in line with Wall Street forecasts
- Same-store sales grew 2.0%, driven by higher traffic and larger basket sizes
- Full-year EPS guidance raised to $7.20–$7.45, up from $7.10–$7.35
- DG stock jumped roughly 4.6% to $115 in premarket trading Tuesday
Dollar General beat Wall Street’s earnings expectations in its fiscal first quarter and lifted its full-year guidance, sending the stock up 4.6% to $115 in premarket trading Tuesday.
Dollar General Corporation, DG
The discount retailer reported Q1 earnings of $2.00 per share, topping the $1.89 analyst consensus by $0.10. Net income came in at $444.1 million, up from $391.9 million a year ago.
Revenue climbed 3.4% year-over-year to $10.79 billion. That came in just under the $10.82 billion Wall Street had modeled, but was close enough that the market didn’t seem to mind.
DOLLAR GENERAL $DG EARNINGS ARE OUT!
🟢 EPS: $2.00 | Est. $1.88
🔴 REV: $10.79B | Est. $10.81B
IMPLIED MOVE TODAY: ±9.42%!! pic.twitter.com/CV5L399cii— Schaeffer's Investment Research (@schaeffers) June 2, 2026
Same-store sales rose 2.0%, matching analyst expectations. Customer traffic was up 1.4% and average transaction size edged up 0.5%.
Margin Expansion Drives the Beat
The earnings outperformance came largely from operating margin expansion. Operating profit jumped 10.8% to $638.5 million. Gross profit margin widened 65 basis points to 31.6%.
CEO Todd Vasos credited higher inventory markups and lower shrink and inventory damages. He acknowledged headwinds from severe winter weather and elevated fuel costs, but said margin improvements more than covered them.
“We are pleased with our first-quarter EPS performance, which exceeded our expectations as strong operating margin expansion more than offset the impact of severe winter weather and higher fuel costs,” Vasos said.
Growth was broad-based across consumables, seasonal, apparel, and home products. The increase came from both new store openings and stronger performance at existing locations.
Guidance Gets a Lift
For fiscal 2026, Dollar General raised its full-year adjusted EPS guidance range to $7.20–$7.45, up from the prior $7.10–$7.35. The midpoint of $7.33 sits above the analyst consensus of $7.25.
The company kept its net sales growth outlook at 3.7% to 4.2% and same-store sales growth guidance of 2.2% to 2.7%. No changes there, but the EPS raise was enough to get the market’s attention.
The board also declared a quarterly cash dividend of $0.59 per share, payable on or before July 21, 2026.
The results follow rival Dollar Tree reporting last week that its value proposition continued to resonate with shoppers across all income levels, also raising its outlook for the year.
Dollar General’s store count continues to grow, with new openings outpacing closures during the quarter.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
