Q1 sales totaled $10.79 billion with same-store sales up 2.0% and EPS of $2.00 versus $1.88 estimates. Gross margin improved via a 28 bp shrink reduction and higher markups, aided by higher-income shoppers, as the company raised FY26 EPS guidance to $7.20–$7.45 and plans 4,730+ real estate projects.
Dollar General posted net sales of $10.79 billion, same-store sales rose 2.0%, and EPS reached $2.00, exceeding the $1.88 consensus, while shares declined about 2.6% following the release.
Shrink improved by 28 basis points year-over-year on top of a 61-basis-point gain the prior year, driven by tighter inventory controls, fewer SKUs in stores and higher inventory markups.
Core customers remain under pressure, but households earning over $100,000 annually ranked among the strongest cohorts, helping Dollar General gain share from premium retailers such as drug stores, with Costco and Walmart also benefiting from trade-in shoppers.
The company raised full-year EPS guidance to $7.20–$7.45 and plans more than 4,730 real estate projects, including roughly 450 new store openings alongside remodels and relocations.
