Dollar General Earnings Show Strong Q4, Weaker FY Outlook

Dollar General Corporation (DG) reported stronger profit and traffic in fiscal fourth-quarter 2025 on March 12, 2026, while projecting slower comparable-store growth and a larger capital-investment plan for fiscal 2026, narrowing the outlook for the year ahead.

Fourth-Quarter and Fiscal 2025 Results

The company said in a press release on March 12 that fiscal fourth-quarter 2025 net sales reached $10.9 billion, up 5.9% year over year. Same-store sales rose 4.3%, driven by a 2.6% increase in traffic and a 1.7% rise in average transaction size.

Operating profit more than doubled to $606 million, a 106.1% increase from the prior year, which included $232 million in charges related to a store-portfolio optimization review. Net income for the quarter was $426 million, with diluted earnings per share of $1.93, both sharply higher year over year and exceeding estimates.

For the full fiscal year 2025, net sales totaled $42.7 billion, a 5.2% increase, while same-store sales rose 3.0%, supported by 1.6% higher traffic and a 1.4% increase in average transaction size. Operating profit grew 28.6% to $2.2 billion. Net income rose 34.4% to $1.5 billion, and diluted EPS increased 34.1% to $6.85.

During fiscal 2025, Dollar General opened 581 stores in the U.S. and eight in Mexico. It completed 2,000 Project Renovate remodels, 2,254 Project Elevate remodels, and executed 47 relocations. The company did not repurchase shares in fiscal 2025.

Chief Executive Todd Vasos said, "We are pleased with our strong fourth quarter and fiscal year results... this momentum reflects the progress we’ve made with our strategy."

Fiscal 2026 Guidance and Capital Plan

Dollar General projected fiscal 2026 net sales growth of 3.7% to 4.2% and same-store sales growth of 2.2% to 2.7%. The company expects capital expenditures between $1.4 billion and $1.5 billion, including strategic initiatives.

The real-estate program for fiscal 2026 includes roughly 4,730 projects: about 450 new U.S. stores, 10 in Mexico, 2,000 Project Renovate remodels, 2,250 Project Elevate remodels, and approximately 20 relocations.

The guidance assumes continued strategy execution amid consumer caution and competition. The company cited risks including shrink, inventory pressures, supply-chain disruptions, rising wage costs, and cyber threats.

An earnings conference call scheduled for 9:00 a.m. ET on March 12 will provide management an opportunity to discuss the guidance, the expanded capital program, and plans to balance elevated investment with capital returns after pausing share repurchases in fiscal 2025.