Dollar General Q1 Net Income Up 13.3%, Raises FY26 EPS to $7.20–$7.45
DG•Net income rose 13.3% to $444.1 million in Q1 on 3.4% sales growth to $10.78 billion and a 12.4% EPS gain to $2.00. Dollar General raised its FY26 diluted EPS guidance to $7.20–$7.45 and reiterated 3.7%–4.2% sales growth and $1.4–$1.5 billion capex.
1. Q1 Financial Highlights
Dollar General’s Q1 net income climbed 13.3% to $444.1 million, driven by net sales growth of 3.4% to $10.78 billion. Operating profit increased 10.8% to $638.5 million, while diluted EPS rose 12.4% to $2.00 per share.
2. Margin and Inventory Dynamics
Gross profit margin improved to 31.6% from 31.0%, supported by higher inventory markups and reduced shrink and damages. These gains were partially offset by increased markdowns and higher transportation expenses.
3. Store Expansion and Remodels
During Q1, the company opened 190 US stores and five in Mexico, remodelled 659 locations under Project Renovate and 711 under Project Elevate, and relocated six outlets. Capital expenditure for the quarter totaled $352 million.
4. FY26 Outlook and Capital Allocation
Dollar General reiterated net sales growth guidance of 3.7%–4.2%, same-store sales growth of 2.2%–2.7%, and capex of $1.4–$1.5 billion. EPS guidance was raised to $7.20–$7.45 with an assumed tax rate of 24.5%, and real estate projects are planned at 4,730 sites.
