Dollar General Corporation Reports Second Quarter 2026 Results
Raises Financial Guidance for Fiscal Year 2026 GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Dollar General Corporation (NYSE: DG) today reported financial results for its second quarter (13 weeks) ended July 31, 2026.
“We are pleased with our second quarter performance, which included balanced topline growth, healthy operating margin expansion and strong double-digit EPS growth,” said Todd Vasos, Dollar General’s chief executive officer. “These results, which exceeded our expectations even before considering the benefit from tariff refunds after related reinvestments, are a testament to the strong execution, strategic direction, and continued dedication of our team. I want to thank our associates in our stores, distribution centers, private fleet and store support center for the work they do every day to fulfill our mission of Serving Others.”
“Our results reflect continued momentum across the business, including our fifth consecutive quarter of customer traffic growth and the sixth consecutive quarter of positive comparable sales growth across all four merchandising categories. This broad-based performance reflects the strength of our unique combination of value and convenience and the important role Dollar General plays in the communities we serve. As we move through the back half of the year, we remain confident in our strategy, our long-term financial framework and our ability to continue driving value for our customers, associates and shareholders.”
Net sales increased 5.2% to $11.3 billion in the second quarter of fiscal 2026 compared to $10.7 billion in the second quarter of fiscal 2025. The net sales increase was driven by growth in same-store sales and positive sales contributions from new stores, partially offset by the impact of store closures. Same-store sales increased 3.5% compared to the second quarter of fiscal 2025, reflecting increases of 2.0% in customer traffic and 1.5% in average transaction amount. Same-store sales in the second quarter of fiscal 2026 included growth in each of the consumables, seasonal, home products, and apparel categories.
Gross profit as a percentage of net sales was 32.6% in the second quarter of fiscal 2026 compared to 31.3% in the second quarter of fiscal 2025, an increase of 127 basis points. This gross profit rate increase was primarily attributable to tariff refunds, a lower LIFO provision, and lower distribution costs; partially offset by increased markdowns and increased transportation costs. The Company estimates the gross margin benefit of tariff refunds, after related reinvestments, was approximately 81 basis points.
Selling, General and Administrative Expenses (“SG&A”) as a percentage of net sales were essentially flat year over year, at 25.8% in both the second quarter of fiscal 2026 and the second quarter of fiscal 2025. The primary expense that was higher as a percentage of net sales in the second quarter of 2026 was depreciation and amortization; offset by rent, which was lower as a percentage of sales.
Operating profit for the second quarter of fiscal 2026 increased 29.2% to $769.2 million compared to $595.4 million in the second quarter of fiscal 2025. The Company estimates the operating margin benefit of tariff refunds, after related reinvestments, was approximately 66 basis points.
Net interest expense for the second quarter of fiscal 2026 decreased 25.7% to $42.9 million compared to $57.7 million in the second quarter of fiscal 2025.
The effective income tax rate in the second quarter of fiscal 2026 was 24.2% compared to 23.5% in the second quarter of fiscal 2025. This higher effective income tax rate was primarily due to expired federal tax credits, partially offset by a reduced state effective tax rate.
The Company reported net income of $550.3 million for the second quarter of fiscal 2026, an increase of 33.8% compared to $411.4 million in the second quarter of fiscal 2025. Diluted EPS increased 33.3% to $2.48 for the second quarter of fiscal 2026 compared to diluted EPS of $1.86 in the second quarter of fiscal 2025, including an estimated benefit from tariff refunds, after related reinvestments, of approximately $0.25.
As of July 31, 2026, total merchandise inventories, at cost, were $6.6 billion compared to $6.6 billion as of August 1, 2025, a decrease of 2.7% on an average per-store basis.
Total additions to property and equipment in the 26-week period ended July 31, 2026 were $758 million, including approximately: $414 million for improvements, upgrades, remodels and relocations of existing stores; $168 million for distribution and transportation-related projects; $133 million related to store facilities, primarily for leasehold improvements, fixtures and equipment in new stores; and $31 million for information systems upgrades and technology-related projects.
During the second quarter of 2026, the Company opened 125 new stores in the United States and one new store in Mexico, remodeled 665 stores through Project Renovate and 711 stores through Project Elevate, and relocated 5 stores.
The Company intends to repurchase shares under its existing share repurchase program in the second half of the fiscal year ending January 29, 2027 (“fiscal 2026”). The Company’s total remaining authorization for future repurchases was $1.4 billion at the end of the second quarter of 2026. Under the authorization, repurchases may be made from time to time in open market transactions, including pursuant to trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, or in privately negotiated transactions. The timing, manner and number of shares repurchased will depend on a variety of factors, including price, market conditions, compliance with the covenants and restrictions under the Company’s debt agreements and other factors. The authorization has no expiration date.
On August 26, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.59 per share on the Company’s common stock, payable on or before October 20, 2026 to shareholders of record on October 6, 2026. While the Board of Directors currently intends to continue regular cash dividends, the declaration and amount of future dividends are subject to the sole discretion of the Board and will depend upon, among other things, the Company’s results of operations, cash requirements, financial condition, contractual restrictions, excess debt capacity, and other factors the Board may deem relevant in its sole discretion.
The Company is raising its financial guidance to reflect its strong first half results and its improved outlook for the remainder of the year. The Company does not anticipate a material impact to its financial results from tariff refunds, after related reinvestments, in the second half of fiscal 2026. The Company now expects the following for fiscal 2026:
Net · sales growth in the range of approximately 4.0% to 4.3%, compared to its previous expectation in the range of 3.7% to 4.2%
Same-store · sales growth in the range of approximately 2.5% to 2.9%, compared to its previous expectation in the range of 2.2% to 2.7%
Diluted · EPS in the range of approximately $7.80 to $8.00, compared to its previous expectation in the range of $7.20 to $7.45
Diluted o EPS guidance includes the estimated benefit from tariff refunds, after related reinvestments, of approximately $0.25 in the second quarter of fiscal 2026
The Company continues to expect capital expenditures, including those related to investments in the Company’s strategic initiatives, in the range of $1.4 billion to $1.5 billion.
The Company is also reiterating its plans to execute approximately 4,730 real estate projects in fiscal 2026, including opening approximately 450 new stores in the United States and approximately 10 new stores in Mexico, remodeling approximately 2,000 stores through Project Renovate, remodeling approximately 2,250 stores through Project Elevate, and relocating approximately 20 stores.
The Company will hold a conference call on August 27, 2026 at 8:00 a.m. CT/9:00 a.m. ET, hosted by Todd Vasos, chief executive officer, and Donny Lau, chief financial officer. To participate via telephone, please call (877) 407-0890 at least 10 minutes before the conference call is scheduled to begin. The conference ID is 13761377. There will also be a live webcast of the call available at https://investor.dollargeneral.com under “News & Events, Events & Presentations.” A replay of the conference call will be available through September 24, 2026, and will be accessible via webcast replay or by calling (877) 660-6853. The conference ID for the telephonic replay is 13761377.
This press release contains forward-looking information within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act. Forward-looking statements include those regarding the Company’s outlook, strategy, initiatives, plans, intentions or beliefs, including, but not limited to, statements made within the quotation of Mr. Vasos, and in the sections entitled “Share Repurchases,” “Dividend” and “Fiscal Year 2026 Financial Guidance and Store Growth Outlook.”
A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as “accelerate,” “aim,” “anticipate,” “assume,” “back half of the year,” “believe,” “beyond,” “can,” “committed,” “confident,” “continue,” “could,” “drive,” “estimate,” “expect,” “focus on,” “forecast,” “future,” “goal,” “guidance,” “intend,” “investments,” “likely,” “long-term,” “looking ahead,” “look to,” “may,” “model,” “moving toward,” “near- term,” “ongoing,” “opportunities,” “outcome,” “outlook,” “plan,” “position,” “potential,” “predict,” “project,” “prospects,” “seek,” “should,” “subject to,” “target,” “uncertain,” “well-positioned,” “will,” “would,” or “years ahead,” and similar expressions that concern the Company’s outlook, long-term financial framework, strategies, plans, initiatives, intentions or beliefs about future occurrences or results. These matters involve risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those which the Company expected. Many of these statements are derived from the Company’s operating budgets and forecasts as of the date of this release, which are based on many detailed assumptions and estimates that the Company believes are reasonable. However, it is very difficult to predict the effect of known factors on future results, and the Company cannot anticipate all factors that could affect future results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors. Important factors that could cause actual results to differ materially from the expectations expressed in or implied by such forward-looking statements include, but are not limited to:
economic factors, including but not limited to employment levels; inflation (and the Company’s ability to adjust prices sufficiently to offset the effect of inflation); pandemics; higher fuel and energy costs (including those related to the conflict in the Middle East); healthcare, housing and product costs; higher interest rates, consumer debt levels, and tax rates; lack of available credit; tax law changes that negatively affect credits and refunds; decreases in, or elimination of, government assistance programs or subsidies such as unemployment and food/nutrition assistance programs, student loan repayment forgiveness and economic stimulus payments; commodity rates; transportation, lease and insurance costs; wage rates (including · the possibility of increased federal, and further increased state and/or local minimum wage rates/salary levels); foreign exchange rate fluctuations; measures that create barriers to or increase the costs of international trade (including sustained higher import duties or tariffs on both products that we sell and those that we use in our business); the dynamic and uncertain tariff environment (including its impact on our profitability and on our customers’ response to price increases; and changes in laws and regulations and their effect on, as applicable, customer spending, confidence and disposable income, the Company’s ability to execute its strategies and initiatives, the Company’s cost of goods sold, the Company’s SG&A expenses (including real estate and building costs), and the Company’s sales and profitability;
failure to achieve or sustain the Company’s strategies, initiatives and investments, including those relating to merchandising (including those related to non-consumable products), real · estate and new store development, mature stores and store remodels (including Project Elevate), international expansion, store formats and concepts, digital, marketing, shrink, damages, sourcing, private brand, inventory management, supply chain, private fleet, store operations, expense reduction, technology, pOpshelf, and DG Media Network;
competitive pressures and changes in the competitive environment and the geographic · and product markets where the Company operates, including, but not limited to, pricing, promotional activity, expanded availability of mobile, web-based and other digital technologies, effective use of artificial intelligence, and alliances or other business combinations;
failure to timely and cost-effectively execute the Company’s real estate projects and timely · meet its financial expectations, or to anticipate or successfully address the challenges imposed by the Company’s expansion, including into new countries or domestic markets, states, or urban or suburban areas;
failure · to successfully manage inventory balances and in-stock levels, as well as to predict customer trends, spending levels, or price sensitivity;
failure to maintain the security of the Company’s business, customer, employee or vendor information or to comply with privacy laws, or the Company or one of its vendors · falling victim to a cyberattack (which risk is heightened as a result of political uncertainty involving China, the conflict between Russia and Ukraine and the conflict in the Middle East) that prevents the Company from operating all or a portion of its business;
damage or interruption to the Company’s information systems as a result of external factors, · staffing shortages or challenges in maintaining or updating the Company’s existing technology or developing, implementing or integrating new technology (including artificial intelligence);
a significant disruption to the Company’s distribution network, the capacity of the Company’s distribution centers or the timely receipt of inventory; increased fuel or transportation · costs (including those related to conflict in the Middle East); issues related to supply chain disruptions or seasonal buying pattern disruptions; or delays in constructing, opening or staffing new distribution centers (including temperature-controlled distribution centers);
risks and challenges associated with sourcing merchandise from suppliers, including, but not limited to, those related to international trade (for example, increasing tariffs on imported goods, · political uncertainty involving China, disruptive political events such as the conflict between Russia and Ukraine and the conflict in the Middle East, the dynamic and uncertain tariff environment (including the uncertainty regarding the exact timing and amount of any tariff refund payments), and port labor disputes/agreements);
natural disasters, unusual weather conditions (whether or not caused by climate change), pandemic outbreaks or other health crises, political or civil unrest, acts of war, · violence or terrorism, and disruptive global political events (for example, political uncertainty involving China, the conflict between Russia and Ukraine and the conflict in the Middle East);
product · liability, product recall or product safety, labeling or other product-related claims;
incurrence · of material uninsured losses, excessive insurance costs or accident costs;
failure to attract, develop and retain qualified employees while controlling labor costs (including · the possibility of increased federal, and further increased state and/or local minimum wage rates/salary levels), and other labor issues, including employee expectations and productivity and employee safety issues;
loss of key personnel or inability to hire additional qualified personnel, ability to successfully · execute management transitions within the Company’s senior leadership, or inability to enforce non-compete agreements that we have in place with management personnel or enter into new non-compete agreements;
risks · associated with the Company’s private brands, including, but not limited to, the Company’s level of success in improving their gross profit rate at expected levels;
deterioration in market conditions, including market disruptions, adverse conditions in the financial markets including financial institution failures, limited liquidity and interest rate increases, · changes in the Company’s credit profile (including the Company’s current increased debt levels or any downgrade to the Company’s credit ratings), compliance with covenants and restrictions under the Company’s debt agreements, and the amount of the Company’s available excess capital;
impact · of market and other factors on the volatility of the Company’s common stock price;
the impact of changes in or noncompliance with governmental regulations and requirements, including, but not limited to, those dealing with the sale of products, including without limitation, product and food safety, marketing, labeling or pricing; information security and privacy; labor and employment; employee wages, salary levels and benefits (including the possibility of increased federal, and further increased state and/or local minimum wage rates/salary levels); health and safety; real property; public accommodations; imports · and customs; transportation; intellectual property; bribery and anti-corruption; climate change; and environmental compliance (including any required public disclosures related thereto), as well as tax laws and policies (including those related to the federal, state or foreign corporate tax rate), the interpretation of existing tax laws, the expiration of the Work Opportunity Tax Credit, or the Company’s failure to sustain its reporting positions negatively affecting the Company’s overall effective tax rate, and uncertainty surrounding potential changes to the regulatory environment under the current U.S. administration;
developments in or outcomes of private actions, class actions, multi-district litigation, arbitrations, derivative actions, administrative proceedings, regulatory actions or · other litigation or of inquiries from federal, state and local agencies, regulatory authorities, attorneys general, committees, subcommittees and members of the U.S. Congress, and other local, state, federal and international governmental authorities;
new · accounting guidance or changes in the interpretation or application of existing guidance;
the factors disclosed under “Risk Factors” in the Company’s most recent · Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q; and
All forward-looking statements are qualified in their entirety by these and other cautionary statements that the Company makes from time to time in its SEC filings and public communications. The Company cannot assure the reader that it will realize the results or developments the Company anticipates or, even if substantially realized, that they will result in the consequences or affect the Company or its operations in the way the Company expects. Forward-looking statements speak only as of the date made. The Company undertakes no obligation, and specifically disclaims any duty, to update or revise any forward-looking statements as a result of new information, future events or circumstances, or otherwise, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward- looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.
Investors should also be aware that while the Company does, from time to time, communicate with securities analysts and others, it is against the Company’s policy to disclose to them any material, nonpublic information or other confidential commercial information. Accordingly, shareholders should not assume that the Company agrees with any statement or report issued by any securities analyst regardless of the content of the statement or report. Furthermore, the Company has a policy against confirming projections, forecasts or opinions issued by others. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the Company’s responsibility.
Dollar General Corporation (NYSE: DG) is proud to serve as America’s neighborhood general store. Founded in 1939, Dollar General lives its mission of Serving Others every day by providing access to affordable products and services for its customers, career opportunities for its employees, and literacy and education support for its hometown communities. As of July 31, 2026, the Company’s 21,148 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico provide everyday essentials including food, health and wellness products, cleaning and laundry supplies, self-care and beauty items, and seasonal décor from our high-quality private brands alongside many of the world’s most trusted brands such as Coca Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars, Nestlé, Procter & Gamble and Unilever. DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
For the 26 Weeks Cash flows from Ended operating July 31, August 1, activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 994,442 $ 803,354 Adjustments to reconcile net income to net cash from operating activities: Depreciation and 548,310 509,609 amortization Deferred income 82,037 24,035 taxes Noncash share-based 61,213 52,977 compensation Other noncash (gains) and 29,922 88,387 losses Change in operating assets and liabilities: Merchandise (248,951 ) 44,667 inventories Prepaid expenses and (169,447 ) (25,727 ) other current assets Accounts 275,501 111,177 payable Accrued expenses and 74,696 167,312 other liabilities Income taxes (140,944 ) 46,560 Other (10,074 ) (7,496 ) Net cash provided by (used in) 1,496,705 1,814,855 operating activities Cash flows from investing activities: Purchases of property and (758,450 ) (693,918 ) equipment Proceeds from sales of 4,168 2,424 property and equipment Net cash provided by (used in) (754,282 ) (691,494 ) investing activities Cash flows from financing activities: Repayments of long-term (11,937 ) (509,629 ) obligations Costs associated with - (487 ) issuance of debt Payments of (260,307 ) (259,718 ) cash dividends Other equity and related (19,090 ) (1,536 ) transactions Net cash provided by (used in) (291,334 ) (771,370 ) financing activities Net increase (decrease) in 451,089 351,991 cash and cash equivalents Cash and cash equivalents, 1,138,501 932,576 beginning of period Cash and cash equivalents, $ 1,589,590 $ 1,284,567 end of period
Supplemental cash flow information: Cash paid for: ────────────────────────────────────────────────────────────────────── Interest $ 112,731 $ 149,339 Income taxes $ 382,267 $ 175,037 Supplemental schedule of non-cash investing and financing activities: Right of use assets obtained in exchange $ 845,860 $ 859,724 for new operating lease liabilities Purchases of property and equipment awaiting processing for payment, $ 146,552 $ 117,281 included in Accounts payable
For the 26 Weeks Ended July 31, August 1, 2026 2025 Beginning store 20,893 20,594 count New store 321 360 openings Store closings (66 ) (208 ) Net new stores 255 152 Ending store 21,148 20,746 count Total selling square footage 161,521 158,458 (000’s) Growth rate 1.9 % 2.6 % (square footage)
Full text with the tables
Exhibit 99
Dollar General Corporation Reports Second Quarter 2026 Results
Raises Financial Guidance for Fiscal Year 2026
GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Dollar General Corporation (NYSE: DG)
today reported financial results for its second quarter (13 weeks) ended July
31, 2026.
Second Quarter Fiscal Year 2026 Highlights
· Net
Sales Increased 5.2% to $11.3 Billion
· Same-Store
Sales Increased 3.5%
· Operating
Profit Increased 29.2% to $769.2 Million
· Diluted
Earnings Per Share (“EPS”) Increased 33.3% to $2.48
· Year-to-Date
Cash Flow From Operations of $1.5 Billion
· Board
of Directors Declares Quarterly Cash Dividend of $0.59 per share
“We are pleased with our second quarter performance, which included balanced
topline growth, healthy operating margin expansion and strong double-digit EPS
growth,” said Todd Vasos, Dollar General’s chief executive officer. “These
results, which exceeded our expectations even before considering the benefit
from tariff refunds after related reinvestments, are a testament to the strong
execution, strategic direction, and continued dedication of our team. I want to
thank our associates in our stores, distribution centers, private fleet and
store support center for the work they do every day to fulfill our mission of
Serving Others.”
“Our results reflect continued momentum across the business, including our fifth
consecutive quarter of customer traffic growth and the sixth consecutive quarter
of positive comparable sales growth across all four merchandising categories.
This broad-based performance reflects the strength of our unique combination of
value and convenience and the important role Dollar General plays in the
communities we serve. As we move through the back half of the year, we remain
confident in our strategy, our long-term financial framework and our ability to
continue driving value for our customers, associates and shareholders.”
Second Quarter Fiscal Year 2026 Overview
Net sales increased 5.2% to $11.3 billion in the second quarter of fiscal 2026
compared to $10.7 billion in the second quarter of fiscal 2025. The net sales
increase was driven by growth in same-store sales and positive sales
contributions from new stores, partially offset by the impact of store closures.
Same-store sales increased 3.5% compared to the second quarter of fiscal 2025,
reflecting increases of 2.0% in customer traffic and 1.5% in average transaction
amount. Same-store sales in the second quarter of fiscal 2026 included growth in
each of the consumables, seasonal, home products, and apparel categories.
Gross profit as a percentage of net sales was 32.6% in the second quarter of
fiscal 2026 compared to 31.3% in the second quarter of fiscal 2025, an increase
of 127 basis points. This gross profit rate increase was primarily attributable
to tariff refunds, a lower LIFO provision, and lower distribution costs;
partially offset by increased markdowns and increased transportation costs. The
Company estimates the gross margin benefit of tariff refunds, after related
reinvestments, was approximately 81 basis points.
Selling, General and Administrative Expenses (“SG&A”) as a percentage of net
sales were essentially flat year over year, at 25.8% in both the second quarter
of fiscal 2026 and the second quarter of fiscal 2025. The primary expense that
was higher as a percentage of net sales in the second quarter of 2026 was
depreciation and amortization; offset by rent, which was lower as a percentage
of sales.
Operating profit for the second quarter of fiscal 2026 increased 29.2% to $769.2
million compared to $595.4 million in the second quarter of fiscal 2025. The
Company estimates the operating margin benefit of tariff refunds, after related
reinvestments, was approximately 66 basis points.
Net interest expense for the second quarter of fiscal 2026 decreased 25.7% to
$42.9 million compared to $57.7 million in the second quarter of fiscal 2025.
The effective income tax rate in the second quarter of fiscal 2026 was 24.2%
compared to 23.5% in the second quarter of fiscal 2025. This higher effective
income tax rate was primarily due to expired federal tax credits, partially
offset by a reduced state effective tax rate.
The Company reported net income of $550.3 million for the second quarter of
fiscal 2026, an increase of 33.8% compared to $411.4 million in the second
quarter of fiscal 2025. Diluted EPS increased 33.3% to $2.48 for the second
quarter of fiscal 2026 compared to diluted EPS of $1.86 in the second quarter of
fiscal 2025, including an estimated benefit from tariff refunds, after related
reinvestments, of approximately $0.25.
Merchandise Inventories
As of July 31, 2026, total merchandise inventories, at cost, were $6.6 billion
compared to $6.6 billion as of August 1, 2025, a decrease of 2.7% on an average
per-store basis.
Capital Expenditures
Total additions to property and equipment in the 26-week period ended July 31,
2026 were $758 million, including approximately: $414 million for improvements,
upgrades, remodels and relocations of existing stores; $168 million for
distribution and transportation-related projects; $133 million related to store
facilities, primarily for leasehold improvements, fixtures and equipment in new
stores; and $31 million for information systems upgrades and technology-related
projects.
During the second quarter of 2026, the Company opened 125 new stores in the
United States and one new store in Mexico, remodeled 665 stores through Project
Renovate and 711 stores through Project Elevate, and relocated 5 stores.
Share Repurchases
The Company intends to repurchase shares under its existing share repurchase
program in the second half of the fiscal year ending January 29, 2027 (“fiscal
2026”). The Company’s total remaining authorization for future repurchases was
$1.4 billion at the end of the second quarter of 2026. Under the authorization,
repurchases may be made from time to time in open market transactions, including
pursuant to trading plans adopted in accordance with Rule 10b5-1 of the
Securities Exchange Act of 1934, as amended, or in privately negotiated
transactions. The timing, manner and number of shares repurchased will depend on
a variety of factors, including price, market conditions, compliance with the
covenants and restrictions under the Company’s debt agreements and other
factors. The authorization has no expiration date.
Dividend
On August 26, 2026, the Company’s Board of Directors declared a quarterly cash
dividend of $0.59 per share on the Company’s common stock, payable on or before
October 20, 2026 to shareholders of record on October 6, 2026. While the Board
of Directors currently intends to continue regular cash dividends, the
declaration and amount of future dividends are subject to the sole discretion of
the Board and will depend upon, among other things, the Company’s results of
operations, cash requirements, financial condition, contractual restrictions,
excess debt capacity, and other factors the Board may deem relevant in its sole
discretion.
Fiscal Year 2026 Financial Guidance and Store Growth Outlook
The Company is raising its financial guidance to reflect its strong first half
results and its improved outlook for the remainder of the year. The Company does
not anticipate a material impact to its financial results from tariff refunds,
after related reinvestments, in the second half of fiscal 2026. The Company now
expects the following for fiscal 2026:
Net
· sales growth in the range of approximately 4.0% to 4.3%, compared to its
previous expectation
in the range of 3.7% to 4.2%
Same-store
· sales growth in the range of approximately 2.5% to 2.9%, compared to its
previous expectation
in the range of 2.2% to 2.7%
Diluted
· EPS in the range of approximately $7.80 to $8.00, compared to its
previous expectation in
the range of $7.20 to $7.45
Diluted
o EPS guidance includes the estimated benefit from tariff refunds, after
related reinvestments,
of approximately $0.25 in the second quarter of fiscal 2026
o Diluted
EPS guidance assumes an effective tax rate of approximately 24.5%
· Share
repurchases of up to $700 million
The Company continues to expect capital expenditures, including those related to
investments in the Company’s strategic initiatives, in the range of $1.4 billion
to $1.5 billion.
The Company is also reiterating its plans to execute approximately 4,730 real
estate projects in fiscal 2026, including opening approximately 450 new stores
in the United States and approximately 10 new stores in Mexico, remodeling
approximately 2,000 stores through Project Renovate, remodeling approximately
2,250 stores through Project Elevate, and relocating approximately 20 stores.
Conference Call Information
The Company will hold a conference call on August 27, 2026 at 8:00 a.m. CT/9:00
a.m. ET, hosted by Todd Vasos, chief executive officer, and Donny Lau, chief
financial officer. To participate via telephone, please call (877) 407-0890 at
least 10 minutes before the conference call is scheduled to begin. The
conference ID is 13761377. There will also be a live webcast of the call
available at https://investor.dollargeneral.com under “News & Events, Events &
Presentations.” A replay of the conference call will be available through
September 24, 2026, and will be accessible via webcast replay or by calling
(877) 660-6853. The conference ID for the telephonic replay is 13761377.
Forward-Looking Statements
This press release contains forward-looking information within the meaning of
the federal securities laws, including the Private Securities Litigation Reform
Act. Forward-looking statements include those regarding the Company’s outlook,
strategy, initiatives, plans, intentions or beliefs, including, but not limited
to, statements made within the quotation of Mr. Vasos, and in the sections
entitled “Share Repurchases,” “Dividend” and “Fiscal Year 2026 Financial
Guidance and Store Growth Outlook.”
A reader can identify forward-looking statements because they are not limited to
historical fact or they use words such as “accelerate,” “aim,” “anticipate,”
“assume,” “back half of the year,” “believe,” “beyond,” “can,” “committed,”
“confident,” “continue,” “could,” “drive,” “estimate,” “expect,” “focus on,”
“forecast,” “future,” “goal,” “guidance,” “intend,” “investments,” “likely,”
“long-term,” “looking ahead,” “look to,” “may,” “model,” “moving toward,” “near-
term,” “ongoing,” “opportunities,” “outcome,” “outlook,” “plan,” “position,”
“potential,” “predict,” “project,” “prospects,” “seek,” “should,” “subject to,”
“target,” “uncertain,” “well-positioned,” “will,” “would,” or “years ahead,” and
similar expressions that concern the Company’s outlook, long-term financial
framework, strategies, plans, initiatives, intentions or beliefs about future
occurrences or results. These matters involve risks, uncertainties and other
factors that may change at any time and may cause actual results to differ
materially from those which the Company expected. Many of these statements are
derived from the Company’s operating budgets and forecasts as of the date of
this release, which are based on many detailed assumptions and estimates that
the Company believes are reasonable. However, it is very difficult to predict
the effect of known factors on future results, and the Company cannot anticipate
all factors that could affect future results that may be important to an
investor. All forward-looking information should be evaluated in the context of
these risks, uncertainties and other factors. Important factors that could cause
actual results to differ materially from the expectations expressed in or
implied by such forward-looking statements include, but are not limited to:
economic
factors, including but not limited to employment levels; inflation (and
the Company’s
ability to adjust prices sufficiently to offset the effect of inflation);
pandemics; higher
fuel and energy costs (including those related to the conflict in the
Middle East); healthcare,
housing and product costs; higher interest rates, consumer debt levels,
and tax rates; lack
of available credit; tax law changes that negatively affect credits and
refunds; decreases
in, or elimination of, government assistance programs or subsidies such
as unemployment and
food/nutrition assistance programs, student loan repayment forgiveness
and economic stimulus
payments; commodity rates; transportation, lease and insurance costs;
wage rates (including
· the possibility of increased federal, and further increased state and/or
local minimum wage
rates/salary levels); foreign exchange rate fluctuations; measures that
create barriers to
or increase the costs of international trade (including sustained higher
import duties or
tariffs on both products that we sell and those that we use in our
business); the dynamic
and uncertain tariff environment (including its impact on our
profitability and on our customers’
response to price increases; and changes in laws and regulations and
their effect on, as
applicable, customer spending, confidence and disposable income, the
Company’s ability
to execute its strategies and initiatives, the Company’s cost of goods
sold, the Company’s
SG&A expenses (including real estate and building costs), and the
Company’s sales
and profitability;
failure
to achieve or sustain the Company’s strategies, initiatives and
investments, including
those relating to merchandising (including those related to
non-consumable products), real
· estate and new store development, mature stores and store remodels
(including Project Elevate),
international expansion, store formats and concepts, digital, marketing,
shrink, damages,
sourcing, private brand, inventory management, supply chain, private
fleet, store operations,
expense reduction, technology, pOpshelf, and DG Media Network;
competitive
pressures and changes in the competitive environment and the geographic
· and product markets where the Company operates, including, but
not limited to, pricing, promotional activity, expanded availability of
mobile, web-based and other digital technologies, effective use
of artificial intelligence, and alliances or other business combinations;
failure
to timely and cost-effectively execute the Company’s real estate projects
and timely
· meet its financial expectations, or to anticipate or successfully address
the challenges
imposed by the Company’s expansion, including into new countries or
domestic markets,
states, or urban or suburban areas;
· levels
of inventory shrinkage and damages;
failure
· to successfully manage inventory balances and in-stock levels, as well as
to predict customer
trends, spending levels, or price sensitivity;
failure
to maintain the security of the Company’s business, customer, employee or
vendor information
or to comply with privacy laws, or the Company or one of its vendors
· falling victim to a
cyberattack (which risk is heightened as a result of political
uncertainty involving China,
the conflict between Russia and Ukraine and the conflict in the Middle
East) that prevents
the Company from operating all or a portion of its business;
damage
or interruption to the Company’s information systems as a result of
external factors,
· staffing shortages or challenges in maintaining or updating the Company’s
existing
technology or developing, implementing or integrating new technology
(including artificial
intelligence);
a
significant disruption to the Company’s distribution network, the
capacity of the Company’s
distribution centers or the timely receipt of inventory; increased fuel
or transportation
· costs (including those related to conflict in the Middle East); issues
related to supply
chain disruptions or seasonal buying pattern disruptions; or delays in
constructing, opening
or staffing new distribution centers (including temperature-controlled
distribution centers);
risks
and challenges associated with sourcing merchandise from suppliers,
including, but not limited
to, those related to international trade (for example, increasing tariffs
on imported goods,
· political uncertainty involving China, disruptive political events such
as the conflict between
Russia and Ukraine and the conflict in the Middle East, the dynamic and
uncertain tariff
environment (including the uncertainty regarding the exact timing and
amount of any tariff
refund payments), and port labor disputes/agreements);
natural
disasters, unusual weather conditions (whether or not caused by climate
change), pandemic
outbreaks or other health crises, political or civil unrest, acts of war,
· violence or terrorism,
and disruptive global political events (for example, political
uncertainty involving China,
the conflict between Russia and Ukraine and the conflict in the Middle
East);
product
· liability, product recall or product safety, labeling or other
product-related claims;
incurrence
· of material uninsured losses, excessive insurance costs or accident
costs;
failure
to attract, develop and retain qualified employees while controlling
labor costs (including
· the possibility of increased federal, and further increased state and/or
local minimum wage
rates/salary levels), and other labor issues, including employee
expectations and productivity
and employee safety issues;
loss
of key personnel or inability to hire additional qualified personnel,
ability to successfully
· execute management transitions within the Company’s senior leadership, or
inability
to enforce non-compete agreements that we have in place with management
personnel or enter
into new non-compete agreements;
risks
· associated with the Company’s private brands, including, but not limited
to, the Company’s
level of success in improving their gross profit rate at expected levels;
· failure
to protect the Company’s reputation;
· seasonality
of the Company’s business;
· reliance
on third parties in many aspects of the Company’s business;
deterioration
in market conditions, including market disruptions, adverse conditions in
the financial markets
including financial institution failures, limited liquidity and interest
rate increases,
· changes in the Company’s credit profile (including the Company’s current
increased
debt levels or any downgrade to the Company’s credit ratings), compliance
with covenants
and restrictions under the Company’s debt agreements, and the amount of
the Company’s
available excess capital;
impact
· of market and other factors on the volatility of the Company’s common
stock price;
the
impact of changes in or noncompliance with governmental regulations and
requirements, including,
but not limited to, those dealing with the sale of products, including
without limitation,
product and food safety, marketing, labeling or pricing; information
security and privacy;
labor and employment; employee wages, salary levels and benefits
(including the possibility
of increased federal, and further increased state and/or local minimum
wage rates/salary
levels); health and safety; real property; public accommodations; imports
· and customs; transportation;
intellectual property; bribery and anti-corruption; climate change; and
environmental compliance
(including any required public disclosures related thereto), as well as
tax laws and policies
(including those related to the federal, state or foreign corporate tax
rate), the interpretation
of existing tax laws, the expiration of the Work Opportunity Tax Credit,
or the Company’s
failure to sustain its reporting positions negatively affecting the
Company’s overall
effective tax rate, and uncertainty surrounding potential changes to the
regulatory environment
under the current U.S. administration;
developments
in or outcomes of private actions, class actions, multi-district
litigation, arbitrations,
derivative actions, administrative proceedings, regulatory actions or
· other litigation or
of inquiries from federal, state and local agencies, regulatory
authorities, attorneys general,
committees, subcommittees and members of the U.S. Congress, and other
local, state, federal
and international governmental authorities;
new
· accounting guidance or changes in the interpretation or application of
existing guidance;
the
factors disclosed under “Risk Factors” in the Company’s most recent
· Annual
Report on Form 10-K and any subsequently filed Quarterly Reports on Form
10-Q;
and
· such
other factors as may be discussed or identified in this press release.
All forward-looking statements are qualified in their entirety by these and
other cautionary statements that the Company makes from time to time in its SEC
filings and public communications. The Company cannot assure the reader that it
will realize the results or developments the Company anticipates or, even if
substantially realized, that they will result in the consequences or affect the
Company or its operations in the way the Company expects. Forward-looking
statements speak only as of the date made. The Company undertakes no obligation,
and specifically disclaims any duty, to update or revise any forward-looking
statements as a result of new information, future events or circumstances, or
otherwise, except as otherwise required by law. As a result of these risks and
uncertainties, readers are cautioned not to place undue reliance on any forward-
looking statements included herein or that may be made elsewhere from time to
time by, or on behalf of, the Company.
Investors should also be aware that while the Company does, from time to time,
communicate with securities analysts and others, it is against the Company’s
policy to disclose to them any material, nonpublic information or other
confidential commercial information. Accordingly, shareholders should not assume
that the Company agrees with any statement or report issued by any securities
analyst regardless of the content of the statement or report. Furthermore, the
Company has a policy against confirming projections, forecasts or opinions
issued by others. Thus, to the extent that reports issued by securities analysts
contain any projections, forecasts or opinions, such reports are not the
Company’s responsibility.
About Dollar General Corporation
Dollar General Corporation (NYSE: DG) is proud to serve as America’s
neighborhood general store. Founded in 1939, Dollar General lives its mission of
Serving Others every day by providing access to affordable products and services
for its customers, career opportunities for its employees, and literacy and
education support for its hometown communities. As of July 31, 2026, the
Company’s 21,148 Dollar General, DG Market, DGX and pOpshelf stores across the
United States and Mi Súper Dollar General stores in Mexico provide everyday
essentials including food, health and wellness products, cleaning and laundry
supplies, self-care and beauty items, and seasonal décor from our high-quality
private brands alongside many of the world’s most trusted brands such as Coca
Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars,
Nestlé, Procter & Gamble and Unilever.
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
ASSETS (Unaudit… January
Current July 31, August 1, 30,
assets: 2026 2025 2026
──────────────────────────────────────────────────────────────────────────────
Cash
and $ 1,589,5… $ 1,284,5… $ 1,138,5…
cash
equiva…
Mercha… 6,552,8… 6,609,6… 6,331,8…
invent…
Income
taxes 75,422 81,728 17,158
receiv…
Prepaid
expens…
and 564,058 422,694 410,283
other
current
assets
Total
current 8,781,9… 8,398,6… 7,897,8…
assets
Net
proper… 6,623,8… 6,398,0… 6,398,5…
and
equipm…
Operat…
lease 11,150,… 11,262,… 11,072,…
assets
Goodwi… 4,338,5… 4,338,5… 4,338,5…
Other
intang… 1,200,0… 1,199,7… 1,200,0…
assets,
net
Other
assets, 72,478 55,796 56,199
net
Total $ 32,167,… $ 31,653,… $ 30,963,…
assets
LIABIL…
AND
SHAREH…
EQUITY
Current
liabil…
Current
portion
of $ 12,670 $ 19,326 $ 14,401
long-t…
obliga…
Current
portion
of 1,572,0… 1,502,5… 1,532,4…
operat…
lease
liabil…
Accoun… 4,349,5… 3,970,6… 4,051,5…
payable
Accrued
expens… 1,314,1… 1,197,8… 1,263,2…
and
other
Income
taxes 16,677 11,292 99,357
payable
Total
current 7,265,0… 6,701,6… 6,961,1…
liabil…
Long-t… 4,558,1… 5,725,7… 4,565,8…
obliga…
Long-t…
operat… 9,630,2… 9,820,2… 9,605,8…
lease
liabil…
Deferr…
income 1,120,8… 1,127,7… 1,038,8…
taxes
Other 304,308 265,484 280,004
liabil…
Total 22,878,… 23,640,… 22,451,…
liabil…
Commit…
and
contin…
Shareh…
equity:
Prefer… - - -
stock
Common 193,040 192,593 192,694
stock
Additi…
paid-in 3,951,4… 3,863,8… 3,909,5…
capital
Retain… 5,132,5… 3,949,3… 4,398,4…
earnin…
Accumu…
other
compre… 11,637 6,334 11,209
income
(loss)
Total
shareh… 9,288,6… 8,012,1… 8,511,9…
equity
Total
liabil…
and $ 32,167,… $ 31,653,… $ 30,963,…
shareh…
equity
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
For
the
Quart…
Ended
──────────────────────────────────────────────────────────────────────────────
July % of August % of
31, Net 1, Net
2026 Sales 2025 Sales
Net $ 11,2… 100.… % $ 10,7… 100.…
sales
Cost
of 7,60… 67.40 7,36… 68.66
goods
sold
Gross 3,68… 32.60 3,36… 31.34
prof…
Sell…
gene…
and 2,91… 25.79 2,76… 25.79
admi…
expe…
Oper… 769,… 6.81 595,… 5.55
prof…
Inte…
expe… 42,8… 0.38 57,7… 0.54
net
Inco…
befo… 726,… 6.43 537,… 5.01
inco…
taxes
Inco…
tax 175,… 1.56 126,… 1.18
expe…
Net $ 550,… 4.87 % $ 411,… 3.84
inco…
Earn…
per
shar…
Basic $ 2.49 $ 1.87
Dilu… $ 2.48 $ 1.86
Weig…
aver…
shar…
outs…
Basic 220,… 220,…
Dilu… 221,… 220,…
For
the
26
Weeks
Ended July % of August % of
2026 31, Sales Net 2025 1, Sales Net
──────────────────────────────────────────────────────────────────────────────
Net $ 22,07… 100.00 % $ 21,16… 100.00
sales
Cost
of 14,98… 67.88 14,57… 68.85
goods
sold
Gross 7,091… 32.12 6,592… 31.15
prof…
Sell…
gene…
and 5,683… 25.74 5,421… 25.62
admi…
expe…
Oper… 1,407… 6.38 1,171… 5.54
prof…
Inte…
expe… 90,121 0.41 122,3… 0.58
net
Inco…
befo… 1,317… 5.97 1,049… 4.96
inco…
taxes
Inco…
tax 323,1… 1.46 245,8… 1.16
expe…
Net $ 994,4… 4.50 % $ 803,3… 3.80
inco…
Earn…
per
shar…
Basic $ 4.51 $ 3.65
Dilu… $ 4.49 $ 3.64
Weig…
aver…
shar…
outs…
Basic 220,4… 220,0…
Dilu… 221,5… 220,4…
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
For the 26 Weeks
Cash flows from Ended
operating July 31, August 1,
activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 994,442 $ 803,354
Adjustments to
reconcile net
income to
net cash from
operating
activities:
Depreciation
and 548,310 509,609
amortization
Deferred income 82,037 24,035
taxes
Noncash
share-based 61,213 52,977
compensation
Other noncash
(gains) and 29,922 88,387
losses
Change in
operating
assets and
liabilities:
Merchandise (248,951 ) 44,667
inventories
Prepaid
expenses and (169,447 ) (25,727 )
other current
assets
Accounts 275,501 111,177
payable
Accrued
expenses and 74,696 167,312
other
liabilities
Income taxes (140,944 ) 46,560
Other (10,074 ) (7,496 )
Net cash
provided by
(used in) 1,496,705 1,814,855
operating
activities
Cash flows from
investing
activities:
Purchases of
property and (758,450 ) (693,918 )
equipment
Proceeds from
sales of 4,168 2,424
property and
equipment
Net cash
provided by
(used in) (754,282 ) (691,494 )
investing
activities
Cash flows from
financing
activities:
Repayments of
long-term (11,937 ) (509,629 )
obligations
Costs
associated with - (487 )
issuance of
debt
Payments of (260,307 ) (259,718 )
cash dividends
Other equity
and related (19,090 ) (1,536 )
transactions
Net cash
provided by
(used in) (291,334 ) (771,370 )
financing
activities
Net increase
(decrease) in 451,089 351,991
cash and cash
equivalents
Cash and cash
equivalents, 1,138,501 932,576
beginning of
period
Cash and cash
equivalents, $ 1,589,590 $ 1,284,567
end of period
Supplemental cash flow information:
Cash paid for:
──────────────────────────────────────────────────────────────────────
Interest $ 112,731 $ 149,339
Income taxes $ 382,267 $ 175,037
Supplemental schedule of non-cash
investing and financing activities:
Right of use assets obtained in exchange $ 845,860 $ 859,724
for new operating lease liabilities
Purchases of property and equipment
awaiting processing for payment, $ 146,552 $ 117,281
included in Accounts payable
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
Selected Additional Information
(Unaudited)
Sales by Category (in thousands)
For the
Quarter
Ended
──────────────────────────────────────────────────────────────────────────────
July 31, August 1,
2026 2025 % Change
Consuma… $ 9,263,012 $ 8,819,919 5.0 %
Seasonal 1,187,704 1,106,059 7.4 %
Home 536,574 511,842 4.8 %
products
Apparel 303,090 289,917 4.5 %
Net $ 11,290,3… $ 10,727,7… 5.2 %
sales
For the 26
Weeks Ended
2026 July 31, 2025 August 1, % Change
──────────────────────────────────────────────────────────────────────────────
Consumab… $ 18,155,480 $ 17,456,599 4.0 %
Seasonal 2,272,047 2,129,002 6.7 %
Home 1,059,552 1,019,018 4.0 %
products
Apparel 590,266 559,097 5.6 %
Net sales $ 22,077,345 $ 21,163,716 4.3 %
Store Activity
For the 26 Weeks
Ended
July 31, August 1,
2026 2025
Beginning store 20,893 20,594
count
New store 321 360
openings
Store closings (66 ) (208 )
Net new stores 255 152
Ending store 21,148 20,746
count
Total selling
square footage 161,521 158,458
(000’s)
Growth rate 1.9 % 2.6 %
(square footage)
Contacts
Investor Contact:
investorrelations@dollargeneral.com
Media Contact:
dgpr@dollargeneral.com