Dollar General beats Street on profit; on track to open 450 stores this year
Dollar General Corp. reported higher first-quarter earnings and sales amid its fourth consecutive quarter of growth in customer traffic.
The discounter reported net sales of $10.8 billion for the quarter ended May 1, up 3.4% from $10.4 billion in the prior year period. Dollar General credited the net sales increase to positive sales contributions from 195 new stores opened during the quarter and a 2% year-over-year increase in same-store sales driven by 1.4% customer traffic growth and a 0.5-point rise in average basket size.
Same-store sales growth was seen across the consumables, seasonal, apparel, and home products categories.
Net income totaled $444.1 million, up 13.3% from $391.9 million in the first quarter of fiscal 2025. Diluted earnings per share (EPS) increased 12.4% to $2, ahead of analyst projections of $1.89.
Store openings, remodels, relocations, closures
During the quarter, the company opened 190 new stores in the U.S. and five new stores in Mexico. It also remodeled 659 stores through Project Renovate and 711 stores through Project Elevate, relocated six stores and closed 33 stores.
Project Renovate is Dollar General’s traditional remodel program, which impacts 100% of the store and includes adding or replacing coolers as well as upgrading to the latest store format. These remodels are focused primarily on stores that are seven or more years removed from their last touch.
In 2025, Dollar General introduced Project Elevate, an incremental remodel program which is designed to further grow sales and market share in portions of the chain's mature store base that are not yet old enough to be part of a full remodel pipeline.
Dollar General is also reiterating its plans to execute approximately 4,730 real estate projects in fiscal 2026, including opening approximately 450 new stores in the U.S. and approximately 10 new stores in Mexico. It plans to remodel approximately 2,000 stores through Project Renovate and approximately 2,250 stores through Project Elevate. It is relocating approximately 20 stores.
[READ MORE: Dollar General Q4 earnings soar; to unveil new store format]
Guidance
Dollar General is updating its financial guidance to reflect its first quarter results and its outlook for the remainder of the year. The company continues to expect net sales growth in the range of approximately 3.7% to 4.2% and same-store sales growth in the range of approximately 2.2% to 2.7% for fiscal year 2026 ending Jan. 29, 2027.
The retailer is also boosting its guidance for fiscal 2026 diluted EPS to be in the range of approximately $7.20 to $7.45, compared to its previous expectation in the range of $7.10 to $7.35. This guidance assumes an effective tax rate of approximately 24.5%, compared to the previous assumption of approximately 25%.
“We are pleased with our first-quarter EPS performance, which exceeded our expectations as strong operating margin expansion more than offset the impact of severe winter weather and higher fuel costs,” said Todd Vasos, Dollar General CEO. “Our topline 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.”
As of May 1, 2026, Dollar General Corp. operated 21,055 Dollar General, DG Market, DGX and pOpshelf stores across the U.S. and Mi Súper Dollar General stores in Mexico.
