01—Abstract
Summary
Summary of the 10-K filed March 20, 2026. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Net sales increased by 5.2% to $42.72 billion, driven by a 3.0% same-store sales growth and new store openings.
- Gross profit margin improved by 107 basis points to 30.7% of net sales, aided by lower inventory shrink, higher markups, and reduced damages.
- Dollar 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.
- The company repaid $1.7 billion in long-term debt during the fiscal year, reducing interest expenses.
- SG&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.
- The company continues to manage its inventory effectively, with a 6% decrease in merchandise inventories year-over-year, reflecting reduction efforts.
- Dollar 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Dollar General Corp kept $0.04.
- Revenue$42.72B100.0%
- Cost of revenue−$29.62B69.3%
- Gross profit$13.10B30.7%
- Operating costs−$10.90B25.5%
- Operating income$2.20B5.2%
- Interest, other & tax−$691.4M1.6%
- Net income$1.51B3.5%
Where FY2026 revenue went
$42.72B- Cost of revenue: $29.62B, 69% of revenue
- SG&A: $10.90B, 26% of revenue
- Net income: $1.51B, 3.5% of revenue
- Interest, other & tax: $691.4M, 1.6% of revenue
Kept 3.5% as net incomeNet income $1.51B · 3.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 20, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $42.72B$40.61B | +5.2% |
| Cost of Revenue | $29.62B$28.59B | +3.6% |
| Gross Profit | $13.10B$12.02B | +9.0% |
| SG&A Expenses | $10.90B$10.30B | +5.8% |
| Operating Income | $2.20B$1.71B | +28.6% |
| Net Income | $1.51B$1.13B | +34.4% |
| EPS (Basic) | $6.87$5.12 | +34.2% |
| EPS (Diluted) | $6.85$5.11 | +34.1% |
| Shares Outstanding (Basic) | 220.09M219.88M | +0.1% |
| Shares Outstanding (Diluted) | 220.81M220.03M | +0.4% |
05—Questions
Frequently Asked Questions
What was Dollar General's financial performance like in the fiscal year ending January 30, 2026?
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.
What are Dollar General's key strategies for growth and operational improvement?
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.
How is Dollar General managing its debt and capital structure?
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.
Are there any significant risks or challenges highlighted in the report?
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.
06—Continue