Dollar General Beats Q1 EPS Estimates, Revenue Misses by $30M
DG•Dollar General reported Q1 adjusted EPS of $2.00, beating estimates by roughly $0.10, while revenue rose 3.4% to $10.79 billion, narrowly missing the $10.82 billion consensus. It lifted 2026 adjusted EPS guidance to $7.20–$7.45 from $7.10–$7.35, confirmed net sales growth of 3.7%–4.2%, and announced a $0.59 quarterly dividend.
1. Q1 Financial Results
Dollar General delivered adjusted EPS of $2.00, surpassing the $1.89–$1.90 estimate, while revenue climbed 3.4% year-over-year to $10.79 billion, just shy of the $10.82 billion consensus. Same-store sales increased 2.0%, matching expectations.
2. Guidance and Outlook
The company raised fiscal 2026 adjusted EPS guidance to $7.20–$7.45 per share from $7.10–$7.35, maintained a net sales growth forecast of 3.7%–4.2%, and upheld same-store sales growth outlook of 2.2%–2.7%. Capital expenditures are projected at $1.4–$1.5 billion.
3. Operational Drivers
Operating margin expanded by 65 basis points, offsetting severe winter weather and higher fuel costs, as traffic drove 1.4% of the 2.0% comp increase versus 0.5% from ticket growth. Operating profit rose 10.8% and EPS grew 12.4%, supported by inventory markups and shrink improvements.
4. Dividend and Capital Allocation
Dollar General declared a quarterly dividend of $0.59 per share, reflecting ongoing capital return while balancing investment in new stores and operational initiatives.
