Dollar General Q4 earnings soar; to unveil new store format
Dollar General’s earnings more than doubled in its fourth quarter amid increases in customer traffic and the average transaction.
The discounter plans to introduce a new store format in 2026, Dollar General CEO Todd Vasos told analysts on the company's earnings call. The format is designed to be more open and inviting, resulting in greater browsing and treasure hunt shopping as customers are exposed to more categories as they navigate the store.
"We have reimagined our traditional store format by creating a new layout in response to what customers have told us they want from their shopping trip," Vasos said. "Ultimately, we believe this format will help drive both increased transactions and ticket as the store provides for an even fuller fill-in trip."
Dollar General tested the new format in a portion of its 2025 remodel projects, Vasos added, noting that the company was pleased with the incremental sales lift and relative sales outperformance compared to traditional remodels.
In other new initiatives, the retailer plans to pilot a subscription program as part of its loyalty efforts.
Expansion/Remodels
The discounter reiterated its plans to open approximately 450 new stores in the United States (compared to 581 in 2025) and 10 new stores in Mexico in fiscal 2026. It also plans to remodel approximately 2,000 stores through "Project Renovate," and remodel approximately 2,250 stores through "Project Elevate."
"Project Renovate is our traditional remodel program, which impacts 100% of the store and includes adding or replacing coolers as well as upgrading to the latest store format," Vasos said. 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.
"These projects include physical asset enhancements, merchandising updates, product adjacency adjustments and category refreshes, all of which impact up to 80% of the total store," Vasos said.
Fourth Quarter
Dollar General reported net income of $426.3 million and earnings per share of $1.93 for the quarter ended Jan. 30, compared to $191.2 million and earnings per share $0.87 in the year-ago period. Analysts had expected earnings per share of $1.66. (The fourth quarter of fiscal 2024, EPS included a negative impact of approximately $0.81 per share related to the store portfolio optimization review.)
Fourth-quarter net sales rose 5.9% to $10.91 billion, topping estimates of $10.81 billion The increase was driven by growth in same-store sales and positive sales contributions from new stores, and partially offset by the impact of store closures.
Fourth Quarter
Dollar General reported net income of $426.3 million and earnings per share of $1.93 for the quarter ended Jan. 30, compared to $191.2 million and earnings per share $0.87 in the year-ago period. Analysts had expected earnings per share of $1.66. (The fourth quarter of fiscal 2024, EPS included a negative impact of approximately $0.81 per share related to the store portfolio optimization review.)
Fourth-quarter net sales rose 5.9% to $10.91 billion, topping estimates of $10.81 billion The increase was driven by growth in same-store sales and positive sales contributions from new stores, and partially offset by the impact of store closures.Same-store sales increased 4.3%, with a 2.6% increase in customer traffic and a 1.7% increase in average transaction amount. The company cited comp growth in its consumables, seasonal, home products and apparel categories.
For the full fiscal 2025, net sales increased 5.2% to $42.7 billion. Same-store sales rose 3%, with increases of 1.6% in customer traffic and 1.4% in average transaction amount. Net income rose 34.3% to $1.5 billion.
“Our fourth quarter performance was highlighted by a 4.3% increase in same-store sales and continued advancement of our key initiatives, which contributed to strong operating margin expansion and EPS growth that well exceeded our expectations,” Vasos stated in the earnings release. “Looking ahead to 2026, we are excited about our plans to drive continued growth through a variety of initiatives designed to further enhance the customer experience, elevate our brand, drive greater enterprise-wide efficiencies, and extend our reach, all while creating long-term shareholder value.”
For fiscal 2026, Dollar General expects sales to increase 3.7% to 4.2%. Same-store sales growth is expected to decelerate to between 2.2% and 2.7%.
As of Jan. 30, the company operated 20,893 Dollar General, DG Market, DGX and PopShelf stores across the United States and Mi Súper Dollar General stores in Mexico.
