Dollar General reported a 13.3% increase in net income for the first quarter (Q1) ended 1 May 2026, alongside higher sales, operating profit and diluted earnings per share (EPS), and raised its diluted EPS guidance for fiscal 2026 (FY26).
Net income rose to $444.1m in the quarter while net sales climbed 3.4% year-on-year to $10.78bn, driven by contributions from new stores and growth in same-store sales.
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Operating profit increased 10.8% to $638.5m. Diluted earnings per share (EPS) grew 12.4% to $2 from $1.78.
Same-store sales increased 2%, reflecting a 1.4% rise in customer traffic and a 0.5% increase in average transaction value.
Gross profit margin improved to 31.6% from 31%, supported by higher inventory markups and decreased shrink and inventory damages, partially offset by increased markdowns and transportation costs.
Capital expenditure during the quarter totalled $352m.
Dollar General opened 190 stores in the US and five stores in Mexico, remodelled 659 stores through Project Renovate and 711 stores through Project Elevate, and relocated six stores.
The company’s board declared a quarterly cash dividend of $0.59 per share, payable on or before 21 July 2026 to shareholders of record on 7 July 2026.
Dollar General chief executive officer Todd Vasos said: “We are pleased with our Q1 EPS performance, which exceeded our expectations as strong operating margin expansion more than offset the impact of severe winter weather and higher fuel costs.
“Our top line results were highlighted by positive customer traffic and balanced category growth, while continued progress on our key initiatives drove another quarter of strong operating profit growth.”
For FY26, the company repeated its outlook for net sales growth of approximately 3.7% to 4.2%, same-store sales growth of approximately 2.2% to 2.7%, and capital expenditure of $1.4bn to $1.5bn.
Dollar General raised its diluted EPS guidance to approximately $7.20 to $7.45, from its earlier forecast of $7.10 to $7.35.
The updated guidance assumes an effective tax rate of approximately 24.5%.
The company also repeated its plan for approximately 4,730 real estate projects during FY26, comprising around 450 new stores in the US, ten new stores in Mexico, 2,000 Project Renovate remodels, 2,250 Project Elevate remodels and 20 store relocations.
