10-QPeriod: Q2 FY2026

DOLLAR GENERAL CORP Quarterly Report for Q2 Ended May 2, 2025

Filed June 3, 2025For Securities:DG

Summary

Dollar General Corporation reported solid performance in its first quarter of fiscal year 2025, with net sales increasing by 5.3% to $10.44 billion. This growth was driven by a combination of new store openings and a 2.4% increase in same-store sales, reflecting a higher average transaction amount due to increased prices and items per transaction. While customer traffic saw a slight decrease, the overall sales trend indicates resilience in their value-oriented business model. The company maintained its commitment to affordability for its value-conscious customer base, navigating inflationary pressures and economic uncertainties. Gross profit saw a notable increase of 8.0%, with the gross profit margin expanding by 78 basis points due to lower inventory shrink and higher inventory markups. However, Selling, General, and Administrative (SG&A) expenses also rose as a percentage of net sales, primarily due to increases in retail labor, incentive compensation, and repairs. Despite these pressures, Diluted Earnings Per Share (EPS) grew by 7.9% to $1.78, demonstrating effective cost management and sales strategies.

Financial Highlights

42 data points
Beta

Revenue

$10.44B

31.0% Gross Margin

Net Income

$391.93M

3.8% Net Margin

EPS (Diluted)

$1.78

Total Assets

$30.99B

Cash & Equivalents

$850.02M

Free Cash Flow

$847.15M

Financial Statements
Beta
Revenue$10.44B
Cost of Revenue$7.20B
Gross Profit$3.23B
SG&A Expenses$2.66B
Operating Income$576.11M
Net Income$391.93M
EPS (Basic)$1.78
EPS (Diluted)$1.78
Shares Outstanding (Basic)219.99M
Shares Outstanding (Diluted)220.13M

Key Highlights

  • 1Net sales increased by 5.3% to $10.44 billion in Q1 FY2025, driven by new stores and a 2.4% same-store sales growth.
  • 2Gross profit margin improved by 78 basis points to 31.0%, attributed to reduced inventory shrink and higher markups.
  • 3Diluted EPS rose by 7.9% to $1.78, indicating strong bottom-line performance.
  • 4SG&A expenses increased as a percentage of net sales, primarily due to higher labor and compensation costs.
  • 5The company plans significant capital expenditures for FY2025, projecting $1.3 billion to $1.4 billion for new store openings, remodels, and supply chain enhancements.
  • 6Dollar General redeemed $500 million in senior notes in April 2025, demonstrating proactive debt management.

Frequently Asked Questions

Net sales increased by 5.3% to $10.44 billion, primarily driven by sales from new stores and a 2.4% same-store sales increase. The same-store sales growth was supported by a 2.7% rise in the average transaction amount, which was influenced by higher retail prices and an increase in the number of items per transaction.

Gross profit margin improved by 78 basis points to 31.0% in the first quarter. This improvement was primarily due to a reduction in inventory shrink and higher inventory markups, which helped offset increased markdowns. The company also benefited from lower cost of goods sold as a percentage of net sales.

For fiscal year 2025, Dollar General anticipates capital expenditures to be in the range of $1.3 billion to $1.4 billion. This investment will support the opening of approximately 575 new stores, the full remodel of about 2,000 stores, and partial remodels of 2,250 stores through its Project Elevate initiative. Investments will also be directed towards supply chain and technology upgrades.

Dollar General paid a quarterly cash dividend of $0.59 per share. For the remainder of fiscal year 2025, the company does not plan to repurchase shares to preserve its investment-grade credit rating and maintain financial flexibility. A total of approximately $1.38 billion remains authorized for future repurchases, with no expiration date.