10-KPeriod: FY2026

DOLLAR GENERAL CORP Annual Report, Year Ended Jan 30, 2026

Filed March 20, 2026For Securities:DG

Summary

Dollar General Corporation (DG) reported its fiscal year results ending January 30, 2026. The company demonstrated solid revenue growth, driven by both increased same-store sales and new store openings. Despite facing ongoing macroeconomic pressures impacting its core customer base, DG managed to improve its gross profit margin, largely attributed to efforts in reducing inventory shrink and damages. The company continues to invest in strategic initiatives such as store remodels (Project Elevate and Project Renovate) and digital tools to enhance customer convenience and expand offerings. While expansion plans are robust, the company also initiated a store portfolio optimization review, which included some closures, notably impacting the pOpshelf concept. Financially, Dollar General maintained a strong liquidity position, supported by its revolving credit facility and cash flow from operations. The company repaid a significant portion of its long-term debt, reducing interest expenses. Management remains focused on operational efficiency, cost control, and team development as key priorities to navigate the competitive retail landscape and deliver shareholder value. Investors should monitor the company's ability to manage inflationary pressures, adapt to evolving consumer preferences, and the success of its ongoing strategic growth and efficiency initiatives.

Financial Highlights

44 data points
Beta

Revenue

$42.72B

30.7% Gross Margin

Net Income

$1.51B

3.5% Net Margin

EPS (Diluted)

$6.85

Total Assets

$30.96B

Cash & Equivalents

$1.14B

Free Cash Flow

$3.63B

Financial Statements
Beta
Revenue$42.72B
Cost of Revenue$29.62B
Gross Profit$13.10B
SG&A Expenses$10.90B
Operating Income$2.20B
Net Income$1.51B
EPS (Basic)$6.87
EPS (Diluted)$6.85
Shares Outstanding (Basic)220.09M
Shares Outstanding (Diluted)220.81M

Key Highlights

  • 1Net sales increased by 5.2% to $42.72 billion, driven by a 3.0% same-store sales growth and new store openings.
  • 2Gross profit margin improved by 107 basis points to 30.7% of net sales, aided by lower inventory shrink, higher markups, and reduced damages.
  • 3Dollar General plans to open approximately 450 new stores in the U.S. and 10 in Mexico in fiscal year 2026, along with remodeling around 4,270 stores.
  • 4The company repaid $1.7 billion in long-term debt during the fiscal year, reducing interest expenses.
  • 5SG&A expenses as a percentage of net sales saw a slight increase to 25.5% due to higher incentive compensation and repairs, partially offset by lower impairment charges from prior year reviews.
  • 6The company continues to manage its inventory effectively, with a 6% decrease in merchandise inventories year-over-year, reflecting reduction efforts.
  • 7Dollar General has a remaining authorization of approximately $1.38 billion for its common stock repurchase program, with plans to resume repurchases at an appropriate time.

Frequently Asked Questions

Dollar General reported a 5.2% increase in net sales to $42.72 billion, driven by a 3.0% same-store sales increase and the addition of new stores. Gross profit margin improved to 30.7% due to better inventory management and reduced shrink. Net income rose to $1.51 billion, and diluted earnings per share were $6.85.

Dollar General's growth strategy includes opening new stores (planning approximately 450 in the U.S. and 10 in Mexico for FY2026) and extensive store remodels (around 4,270 planned). They are also focused on operational efficiencies like reducing inventory shrink and damages, enhancing their private brand offerings, and investing in digital tools and their DG Media Network to improve customer convenience and create value.

During the fiscal year, Dollar General repaid $1.7 billion of long-term debt, which helped reduce interest expenses. The company maintains a strong liquidity position with a $2.375 billion revolving credit facility and has the option to issue commercial paper. They also have a significant remaining authorization for share repurchases, signaling a commitment to returning capital to shareholders.

Key risks include the impact of macroeconomic factors on their value-conscious customer base, such as inflation and potential changes in government assistance programs. Intense competition, supply chain disruptions, labor cost increases, and the success of new strategic initiatives like the pOpshelf concept (which saw an impairment charge) are also noted. Cybersecurity and data privacy remain ongoing concerns, alongside potential impacts from regulatory and legal matters.