Dollar General reported fourth quarter net sales of $10.9 billion, an increase of 5.9% year-over-year, and diluted EPS of $1.93. The company provided its financial guidance for fiscal year 2026, forecasting same-store sales growth between 2.2% and 2.7% and diluted EPS in the range of $7.10 to $7.35.
Key Highlights
- Same-store sales for the quarter increased 4.3%, significantly ahead of expectations, driven by a 2.6% increase in customer traffic and a 1.7% rise in average transaction amount.
- Gross profit as a percentage of sales expanded by 105 basis points to 30.4%, primarily due to lower shrink, higher inventory markups, and reduced inventory damages.
- For the full fiscal year 2025, net sales grew 5.2% to $42.7 billion, with same-store sales up 3.0% and diluted EPS increasing 34.1% to $6.85.
- Merchandise inventories decreased 7.0% on an average per-store basis, ending the year at $6.3 billion.