Dollar General has raised its full-year guidance after reporting higher sales and a rise in profitability for the third quarter (Q3) of the fiscal year 2025. 

For the quarter ended 31 October, net sales rose 4.6% to $10.6bn, driven by improved customer traffic across key categories. 

Same-store sales rose 2.5% compared to Q3 2024, driven by a 2.5% increase in customer traffic, while average transaction value was unchanged. 

Gross margin rose to 29.9% of net sales in Q3 2025 from 28.8% in Q3 2024 - an improvement of 1.07 percentage points. 

The retailer’s operating profit rose 31.5% year-on-year to $425.9m. 

Net income surged 43.8% to $282.7m, and diluted earnings per share increased by the same proportion to $1.28. 

During the quarter, Dollar General opened 196 new stores, remodelled 651 stores under its Project Elevate programme and 524 locations under Project Renovate, and relocated eight outlets. 

In light of its Q3, Dollar General raised its fiscal 2025 guidance.  

It now anticipates net sales growth of between 4.7% and 4.9%, same-store sales growth of 2.5% to 2.7%, and diluted earnings per share (EPS) of $6.30 to $6.50. 

Capital spending for the year is expected to come in at the lower end of the previously stated $1.3bn to $1.4bn range.  

Dollar General reaffirmed its plan to complete approximately 4,885 real estate projects in fiscal 2025.  

This includes 575 new US stores and up to 15 stores in Mexico, around 2,000 Project Renovate remodels, 2,250 Project Elevate remodels and 45 relocations. 

For the fiscal year 2026, which ends on 29 January 2027, the retailer is targeting 4,730 real estate projects.  

Dollar General CEO Todd Vasos stated: “I want to thank our team for their work serving our customers and communities, which led to another quarter of strong financial results. 

“These results were highlighted by EPS growth of 44%, strong operating margin performance and balanced sales growth, including market share gains across both consumable and non-consumable categories.”