Dollar General sales, earning rise; tariffs start hitting prices
On the heels of stronger-than-expected second-quarter results and continued customer growth across all income brackets, Dollar General raised its full-year guidance.
The discounter said it was raising its financial expectations for the year, primarily to reflect its outperformance in the second quarter, as well as its improved outlook for the second half of the year. It also noted it was taking into consideration the potential for uncertainty related to consumer behavior.
On the company’s earnings call, CEO Todd Vasos said that tariffs have started to result in some price increases. But he noted that Dollar General remained committed to delivering everyday low prices, and offers at least 2,000 items at $1.00 or below.
“Ultimately, customers across all income brackets are coming to Dollar General as they seek value,” he told analysts.
Dollar General released its second-quarter earnings days after it said that CFO Kelly Dilts would depart the company, effective Aug. 28. Donny Lau has been named executive VP and CFO at the discount giant, effective Oct. 20, with Vasos serving as the principal financial officer in the interim.
Second Quarter
The company's net income increased 10% to $411.43 million, or $1.86 a share, for the quarter ended Aug. 1, up from $374.19 million, or $1.70 a share, in the year-ago period. Analysts had expected earnings of $1.58 a share. Operating profit increased 8.3% to $595.4 million
Net sales increased 5.1% to $10.73 billion, topping estimates $10.68 billion. Same-store sales rose 2.8%, reflecting a 1.5% increase in customer traffic and a 1.2% increase in average transaction amount. Same-store sales included growth in each of the consumables, seasonal, home products and apparel categories.
During the second quarter of 2025, the company opened 204 new stores, remodeled 729 stores through Project Elevate and 592 stores through Project Renovate and relocated 15 stores.
"Our improved execution, along with our progress advancing key initiatives, is resonating with both existing and new customers as we further enhance our value and convenience proposition,” Vasos stated in the earnings release.
Dollar General now expects net sales growth of approximately 4.3% to 4.8%, compared to its previous expectation of approximately 3.7% to 4.7%, and same-store sales growth of approximately 2.1% to 2.6%, compared to its previous expectation of approximately 1.5% to 2.5%. It expected earnings per share of approximately $5.80 to $6.30, compared to its previous expectation of approximately $5.20 to $5.80.
As of Aug. 1, the company operated 20,746 Dollar General, DG Market, DGX and PopShelf stores across the United States and Mi Súper Dollar General stores in Mexico.
