How strong was Dollar General's fourth-quarter performance?

Q4 net sales rose 5.9% to $10.9 billion and same-store sales increased 4.3%. Gross margin expanded 105 basis points to 30.4%, and diluted EPS reached $1.93, up from $0.87. Part of the EPS increase reflects lapping prior-year impairment and store closure charges of about $0.81 per share.

What does Dollar General expect for fiscal 2026?

The company guides to net sales growth of 3.7% to 4.2%, same-store sales growth of 2.2% to 2.7%, and diluted EPS of $7.10 to $7.35. The EPS outlook assumes an effective tax rate of about 25% and a roughly $0.13 headwind from the expiration of the Work Opportunity Tax Credit. Capital expenditures are expected to be $1.4 to $1.5 billion.

Is the dividend changing and is the company buying back stock?

The board declared a quarterly dividend of $0.59 per share, unchanged, payable April 21, 2026. The company did not repurchase shares in fiscal 2025 and its fiscal 2026 guidance assumes no share repurchases. Future dividends remain at the board's discretion.

What is the long-term financial framework?

The framework, introduced March 13, 2025, targets net sales growth of about 3.5% to 4%, same-store sales growth of about 2% to 3%, and new unit growth of about 2%. Adjusted operating margin of 6% to 7% and adjusted diluted EPS growth of 10% or more are also targeted, with margin goals beginning in 2028 or 2029. Capital expenditures are targeted at about 3% of net sales.

Is this filing a formal financial statement under SEC rules?

No. The earnings release is furnished under Items 2.02 and 7.01 and is not deemed filed under Section 18 of the Exchange Act. The financial data is unaudited, and forward-looking guidance carries the risks listed in the release and the company's Form 10-K and 10-Q filings.

DG 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed March 12, 2026. Cited figures are marked; the original filing is the authoritative source.

Dollar General (NYSE: DG) reported strong fiscal 2025 fourth-quarter and full-year results for the periods ended January 30, 2026.

Q4 net sales rose 5.9% to $10.9 billion^a, same-store sales grew 4.3% (traffic +2.6%, average ticket +1.7%), and diluted EPS more than doubled to $1.93 from $0.87. The year-over-year comparison is flattered by a roughly $232 million fiscal 2024 charge tied to the store portfolio optimization review (about $0.81 per share), so the rebound is partly a lapping effect. Even so, gross margin expanded 105 basis points in Q4 to 30.4%, driven by lower shrink, higher markups, and lower damages, and full-year operating profit rose 28.6% to $2.2 billion.

Full-year operating cash flow reached $3.6 billion^b, and the company repurchased no shares, as planned. For fiscal 2026 (ending January 29, 2027), management guided to net sales growth of 3.7% to 4.2%, same-store sales growth of 2.2% to 2.7%, and diluted EPS of $7.10 to $7.35. That EPS range absorbs a roughly $0.13 headwind from the expiration of the Work Opportunity Tax Credit and assumes a tax rate near 25%.

Capital expenditures are planned at $1.4 to $1.5 billion^c, with about 450 new U.S. stores and 10 in Mexico, plus continued Project Renovate and Project Elevate remodels. The board declared a quarterly dividend of $0.59 per share, and the company reiterated its long-term framework of 10%+ adjusted EPS growth and 6% to 7% operating margin, with margin targeted to begin in 2028/2029. Investors should weigh the strong earnings momentum against several considerations.

Balance sheet deleveraging is evident, with long-term obligations falling to $4.6 billion^d from $5.7 billion, but cash-funded debt repayment of $1.7 billion in the year reduced financial flexibility for buybacks. Total store count fell to 20,893 after 290 closures, and fiscal 2026 same-store sales guidance is a step down from the 3.0% achieved in fiscal 2025. The filing is a furnished Regulation FD disclosure, not a filed financial statement, and the guidance is forward-looking and subject to the risk factors listed in the release.

02—Key points

Key Highlights

Q4 fiscal 2025 net sales increased 5.9% to $10.9 billion; same-store sales rose 4.3%, driven by a 2.6% traffic gain and a 1.7% increase in average transaction amount.
Q4 diluted EPS rose 121.8% to $1.93 versus $0.87 a year earlier, which included a roughly $0.81 per share hit from store portfolio optimization charges in the prior year.
Full-year fiscal 2025 operating profit grew 28.6% to $2.2 billion, and gross margin expanded 107 basis points to 30.7%, driven by lower shrink and higher markups.
Fiscal 2026 guidance calls for net sales growth of 3.7% to 4.2%, same-store sales growth of 2.2% to 2.7%, and diluted EPS of $7.10 to $7.35, with no share repurchases assumed.
Quarterly dividend declared at $0.59 per share, payable April 21, 2026, to holders of record on April 7, 2026.
Operating cash flow rose 21.3% to $3.6 billion, while long-term obligations fell to $4.6 billion from $5.7 billion after $1.7 billion of debt repayments.
Capital expenditures of $1.4 to $1.5 billion are planned for 2026, including roughly 450 new U.S. stores and continued Project Renovate and Project Elevate remodels.

03—Questions

Frequently Asked Questions

How strong was Dollar General's fourth-quarter performance?
Q4 net sales rose 5.9% to $10.9 billion and same-store sales increased 4.3%. Gross margin expanded 105 basis points to 30.4%, and diluted EPS reached $1.93, up from $0.87. Part of the EPS increase reflects lapping prior-year impairment and store closure charges of about $0.81 per share.
What does Dollar General expect for fiscal 2026?
The company guides to net sales growth of 3.7% to 4.2%, same-store sales growth of 2.2% to 2.7%, and diluted EPS of $7.10 to $7.35. The EPS outlook assumes an effective tax rate of about 25% and a roughly $0.13 headwind from the expiration of the Work Opportunity Tax Credit. Capital expenditures are expected to be $1.4 to $1.5 billion.
Is the dividend changing and is the company buying back stock?
The board declared a quarterly dividend of $0.59 per share, unchanged, payable April 21, 2026. The company did not repurchase shares in fiscal 2025 and its fiscal 2026 guidance assumes no share repurchases. Future dividends remain at the board's discretion.
What is the long-term financial framework?
The framework, introduced March 13, 2025, targets net sales growth of about 3.5% to 4%, same-store sales growth of about 2% to 3%, and new unit growth of about 2%. Adjusted operating margin of 6% to 7% and adjusted diluted EPS growth of 10% or more are also targeted, with margin goals beginning in 2028 or 2029. Capital expenditures are targeted at about 3% of net sales.
Is this filing a formal financial statement under SEC rules?
No. The earnings release is furnished under Items 2.02 and 7.01 and is not deemed filed under Section 18 of the Exchange Act. The financial data is unaudited, and forward-looking guidance carries the risks listed in the release and the company's Form 10-K and 10-Q filings.

04—Continue

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