Dollar General Posts Strong Fiscal 2025 Results, Outlines 2026 Guidance

Dollar General posted strong third-quarter fiscal 2025 results and raised its full-year outlook on the strength of broad-based sales growth, with CEO Todd Vasos specifically crediting store employees for the performance.

For the 13 weeks ended October 31, net sales rose 4.6% to $10.6 billion compared to $10.2 billion in the same period a year earlier. Same-store sales climbed 2.5%, fueled entirely by a 2.5% increase in customer traffic while the average transaction amount held flat. All four merchandise categories, including consumables, seasonal, home products, and apparel, posted positive growth during the quarter.

The profit picture sharpened considerably. Operating profit jumped 31.5% to $425.9 million, and net income reached $282.7 million. Diluted earnings per share rose 43.8% to $1.28, up from $0.89 in the prior-year quarter.

"I want to thank our team for their work serving our customers and communities, which led to another quarter of strong financial results," Vasos said. "These results were highlighted by EPS growth of 44%, strong operating margin performance, and balanced sales growth, including market share gains across both consumable and non-consumable categories."

Dollar General's store expansion continued at pace during the quarter. The Goodlettsville, Tennessee-based retailer opened 196 new locations, remodeled 651 stores under its Project Elevate program and 524 under Project Renovate, and relocated eight outlets.

The company reaffirmed its fiscal 2025 plan to complete approximately 4,885 real estate projects in total, including 575 new U.S. stores, up to 15 stores in Mexico, roughly 2,000 Project Renovate remodels, approximately 2,250 Project Elevate remodels, and 45 relocations.

Coming off the quarter's results, Dollar General raised its full-year fiscal 2025 guidance across every major metric. The company now expects net sales growth of 4.7% to 4.9%, up from a prior range of approximately 4.3% to 4.8%. Same-store sales guidance moved to 2.5% to 2.7% from 2.1% to 2.6%. Full-year diluted EPS guidance increased to $6.30 to $6.50, compared to the previous range of $5.80 to $6.30. Capital expenditures are expected to land at the lower end of the $1.3 billion to $1.4 billion range, with the forecast assuming an effective tax rate of roughly 23.5% and no share repurchases for the year.

Looking ahead to fiscal 2026, which ends January 29, 2027, Dollar General is targeting 4,730 real estate projects, a modest step back from the fiscal 2025 total but still representing a substantial construction and remodel commitment across the chain.

The board of directors declared a quarterly cash dividend of $0.59 per share, payable January 20, 2026, to shareholders of record as of January 6, 2026. The company said it intends to maintain regular dividend payments subject to board approval and financial conditions.

Year-to-date cash flows from operations increased 28.4% to $2.8 billion, reflecting the improved profitability that has accompanied the operational turnaround Vasos has been steering since returning to lead the company.