Dollar General Corporation (NYSE:DG – Get Free Report) has earned an average recommendation of “Hold” from the twenty-nine ratings firms that are presently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, sixteen have given a hold recommendation and twelve have assigned a buy recommendation to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $137.96.
A number of equities research analysts have recently issued reports on the stock. The Goldman Sachs Group boosted their price objective on shares of Dollar General from $128.00 to $141.00 and gave the company a “neutral” rating in a research report on Friday, August 28th. Raymond James Financial reiterated an “outperform” rating and set a $150.00 target price on shares of Dollar General in a research report on Friday, August 28th. Citigroup boosted their price target on Dollar General from $116.00 to $133.00 and gave the company a “neutral” rating in a report on Friday, August 28th. Wall Street Zen raised Dollar General from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. Finally, Morgan Stanley upped their price target on Dollar General from $132.00 to $145.00 and gave the stock an “equal weight” rating in a research report on Friday, August 28th.
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Dollar General Stock Performance
Shares of NYSE DG opened at $126.48 on Tuesday. The firm has a 50 day moving average of $124.26 and a 200 day moving average of $118.84. The company has a current ratio of 1.21, a quick ratio of 0.31 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $27.90 billion, a price-to-earnings ratio of 16.45, a price-to-earnings-growth ratio of 1.74 and a beta of 0.23. Dollar General has a 12-month low of $95.11 and a 12-month high of $158.23.
Dollar General (NYSE:DG – Get Free Report) last announced its earnings results on Thursday, August 27th. The company reported $2.48 EPS for the quarter, beating analysts’ consensus estimates of $2.01 by $0.47. Dollar General had a net margin of 3.90% and a return on equity of 18.93%. The business had revenue of $11.29 billion during the quarter, compared to analysts’ expectations of $11.20 billion. During the same period in the prior year, the company earned $1.86 earnings per share. The firm’s revenue was up 5.2% on a year-over-year basis. Dollar General has set its FY 2026 guidance at 7.800-8.000 EPS. On average, research analysts anticipate that Dollar General will post 7.69 earnings per share for the current year.
Dollar General Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 20th. Stockholders of record on Tuesday, October 6th will be given a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Tuesday, October 6th. Dollar General’s payout ratio is presently 30.69%.
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in DG. Caitong International Asset Management Co. Ltd increased its stake in Dollar General by 4,550.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 186 shares of the company’s stock worth $25,000 after buying an additional 182 shares in the last quarter. Evergreen Advisors LLC bought a new stake in Dollar General during the first quarter valued at about $25,000. Reflection Asset Management purchased a new position in shares of Dollar General in the fourth quarter valued at about $28,000. Rosenberg Matthew Hamilton lifted its position in shares of Dollar General by 788.1% in the second quarter. Rosenberg Matthew Hamilton now owns 373 shares of the company’s stock valued at $43,000 after acquiring an additional 331 shares in the last quarter. Finally, Community Bank N.A. lifted its position in shares of Dollar General by 216.4% in the second quarter. Community Bank N.A. now owns 443 shares of the company’s stock valued at $51,000 after acquiring an additional 303 shares in the last quarter. 91.77% of the stock is currently owned by institutional investors.
Dollar General Company Profile
(Get Free Report)
Dollar General Corporation (NYSE: DG) operates a chain of discount retail stores focused on providing everyday goods at affordable prices. Its merchandise includes consumable products such as food, beverages, cleaning supplies, paper products, and personal-care items, along with seasonal goods, home products, basic apparel, and select health and beauty products. Many stores also offer tobacco products, prepaid wireless services, and other convenience-oriented items.
The company primarily serves rural and suburban communities in the United States through a network of small-format stores located across most U.S.
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Key Takeaways Walmart received about $2.9B in tariff refunds and increased rollbacks to more than 11,000.Target's $994M tariff refund benefit helped lift its second-quarter operating margin to 9.6%.Dollar General said tariff refunds added about 81 basis points to gross margin after reinvestments. Tariff refunds emerged as a meaningful earnings tailwind for major U.S. retailers in the second quarter, helping Walmart Inc. (WMT - Free Report) , Target Corporation (TGT - Free Report) and Dollar General Corporation (DG - Free Report) strengthen margins while giving them additional flexibility to invest in pricing, promotions and customer experience. Although each company approached the benefit differently, the refunds supported their broader strategies of protecting value-conscious shoppers and improving competitive positioning in an uncertain environment.
Walmart Channels Tariff Refunds Into Pricing ActionsWalmart saw a notable boost to profitability from tariff refunds while enabling the company to reinvest in customer-focused pricing initiatives. The company received substantially all of its eligible tariff refunds, totaling approximately $2.9 billion, or about 0.5% of annual U.S. net sales. The refunds contributed to stronger margins, with second-quarter consolidated gross profit rate expanding 96 basis points to 25.4%, driven primarily by Walmart U.S.
Walmart U.S. gross profit increased 9.4%, while gross profit rate improved 158 basis points to 29.4%, supported by tariff refunds and favorable business mix. The benefit also contributed to overall operating income growth, which increased 28.8% year over year, while adjusted operating income rose 17.4% on a constant-currency basis.
Management noted that tariff refunds provided an approximately 750-basis-point benefit to operating income growth in the quarter. Walmart directed the refunds toward customer experience and price leadership, particularly in grocery and general merchandise categories, increasing rollbacks to more than 11,000 during the period.
Target Gets a $994M Margin Boost From Tariff RefundsTarget also recorded a substantial tariff refund benefit during the second quarter. The company recognized $994 million in International Emergency Economic Powers Act tariff refunds as a reduction in the cost of sales. Second-quarter gross margin increased to 33.7%, including a 3.7 percentage-point benefit from tariff refunds. The refunds contributed $1.65 to adjusted earnings per share, while total tariff refund benefits contributed $752 million to net earnings. Excluding tariff refunds, adjusted earnings per share increased 20% year over year.
Tariff refunds also supported operating results. The second-quarter operating margin rate increased to 9.6% from 5.2% a year ago, with tariff refunds accounting for 3.7 percentage points of the improvement. Excluding the refund impact, the operating margin rate was approximately 70 basis points higher than the prior year. The company expects its fiscal 2026 operating margin to include about 90 basis points of benefit from second-quarter tariff refunds.
Beyond improving reported profitability, Target used its stronger financial position to continue investing in value initiatives. Management highlighted that the company lowered prices on more than 10,000 frequently purchased items over the past year while continuing to invest in newness, convenience and the shopping experience. The company’s second-quarter results also showed broad-based sales strength, including growth across all six core merchandising categories and increased digital sales.
Dollar General Directs Tariff Refunds Toward Customer ValueDollar General benefited from tariff refunds in the second quarter, supporting gross margin expansion and improved profitability. The company reported that gross profit as a percentage of sales increased 127 basis points year over year to 32.6%, driven by tariff refunds, lower LIFO provisions and reduced distribution costs. After considering related reinvestments, tariff refunds contributed approximately 81 basis points to gross margin expansion.
The benefit also supported operating performance, with operating profit rising 29.2% year over year to $769.2 million and operating margin expanding 126 basis points to 6.8%. Dollar General estimated that tariff refunds, after reinvestments, contributed about 66 basis points to operating margin growth. Adjusted earnings per share increased 33% to $2.48, including an estimated 25 cents benefit from tariff refunds.
The company used the refund benefits to support customer-focused initiatives, including targeted promotions, lower everyday prices and increased marketing investments. Dollar General received the majority of expected tariff refunds during the quarter and does not expect a material impact from refunds after reinvestments in the second half of fiscal 2026.
Final WordsTariff refunds provided Walmart, Target and Dollar General with temporary financial support that strengthened near-term margins and earnings. The companies used the benefit strategically, primarily through price investments and customer-focused initiatives, to reinforce their value propositions in an increasingly competitive retail landscape.
Dollar General uvedl, že vratky z cel přidaly ve 2. čtvrtletí asi 81 bazických bodů k hrubé marži a zhruba 25 centů k EPS. Většina očekávaných vratek už přišla a ve druhé polovině fiskálního roku 2026 čeká jen malý dopad.
Key Takeaways Dollar General said tariff refunds added about 81 basis points to Q2 gross margin after reinvestments.DG estimated tariff refunds contributed about 66 basis points to operating margin growth in the quarter.Dollar General said tariff refunds added about 25 cents to EPS and will have little second-half impact. Dollar General Corporation (DG - Free Report) received a meaningful boost from tariff refunds during the second quarter of fiscal 2026, supporting margin expansion and profitability. The company reported that gross profit as a percentage of sales increased 127 basis points year over year to 32.6%. The improvement stemmed from tariff refunds, lower LIFO provisions and reduced distribution costs. Dollar General estimated that tariff refunds, after related reinvestments, contributed approximately 81 basis points to gross margin expansion during the quarter.
The benefit from tariff refunds also flowed through to operating profitability. Operating profit increased 29.2% year over year to $769.2 million, while operating margin expanded 126 basis points to 6.8%. The company estimated that tariff refunds, after reinvestments, contributed approximately 66 basis points to operating margin growth. Earnings per share increased 33% to $2.48, including an estimated 25 cents benefit from tariff refunds after related reinvestments.
Dollar General directed a substantial portion of the tariff refunds to enhance its customer value proposition. Management noted that the company invested in targeted promotional activities, lower everyday prices and customer-facing initiatives, including increased marketing expenses.
The company received the majority of its expected tariff refunds in the second quarter and does not anticipate a material impact from tariff refunds after related reinvestments in the second half of fiscal 2026. While tariff refunds supported margin expansion during the quarter, Dollar General noted that other operational improvements also contributed to profitability, including supply-chain efficiencies, and progress in shrink and damages.
How Tariff Refunds Are Affecting Walmart and TargetWalmart Inc. (WMT - Free Report) is also using tariff refunds as a temporary earnings and margin benefit while directing much of the proceeds back into pricing. In the second quarter of fiscal 2027, Walmart said tariff refunds helped lift gross profit and operating income, with operating income receiving an approximately 750-basis-point net benefit after price investments. Walmart expects to continue prioritizing the remaining tariff refunds toward customer experience and price investments in the second half.
Target Corporation (TGT - Free Report) saw an even more pronounced second-quarter fiscal 2026 earnings benefit from tariff refunds. Target recognized $994 million of pretax tariff refunds, which added $752 million to net earnings and $1.65 to earnings per share. Target said the refunds contributed 3.7 percentage points to both gross margin and operating margin in the quarter. Its full-year guidance includes about 90 basis points of operating-margin benefit from second-quarter refunds while excluding any potential future tariff refunds.
How Does Dollar General Stack Up Against Its Industry?Dollar General has seen its shares advance 8% over the past three months against the industry’s 1.7% decline.
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What Does Dollar General’s Current Valuation Suggest?From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 15.13, lower than the industry’s 27.38. The stock is also trading below its 12-month median level of 16.03.
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What Do Earnings Estimates Signal for Dollar General?The Zacks Consensus Estimate for Dollar General’s earnings per share for the current and next fiscal year has increased by 50 cents and 32 cents to $7.89 and $8.39, respectively, over the past 30 days.
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Dollar General currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Walmart, Target a Dollar General rychle rozšiřují retail media byznys. Walmartu globální reklamní byznys ve 2. čtvrtletí fiskálního roku 2027 vzrostl o 38 %.
Key Takeaways Walmart's global ad business rose 38% in fiscal Q2 2027, while Walmart Connect increased 43%.Target's Roundel gross billings rose nearly 20% in Q2 2026, with ad revenues reaching $279 million.Dollar General is expanding DG Media Network across on-site, off-site and in-store channels. Walmart Inc. (WMT - Free Report) , Target Corporation (TGT - Free Report) and Dollar General Corporation (DG - Free Report) are expanding their retail media businesses by combining digital advertising, customer data, e-commerce and physical stores. Each company is taking a different route to scale these higher-margin advertising operations.
Walmart is scaling retail media as part of a global platform strategy. In the second quarter of fiscal 2027, Walmart’s global advertising business grew 38%, while Walmart U.S. advertising, including VIZIO, also rose 38%. Walmart Connect increased 43%. Management linked the momentum to sustained e-commerce growth, which expands opportunities across advertising, marketplace, data ventures and membership.
This Zacks Rank #3 (Hold) company is also widening its addressable market through the acquisition of Vibe, which provides self-service tools aimed at advertisers of different sizes and measures campaign results against actual shopping behavior. Combined with Walmart Connect and VIZIO, the company is building an advertising platform that can be improved centrally and scaled across markets.
Target is leaning on Roundel as part of its expanding non-merchandise business. Gross billings from Roundel increased nearly 20% in the second quarter of 2026. Target separately reported $279 million in quarterly advertising revenues, up from $217 million a year earlier, while first-half advertising revenues rose to $525 million from $379 million. Non-merchandise sales grew 20.1%, reflecting growth in Roundel, Target Circle 360 and Target+.
This Zacks Rank #2 (Buy) company is also investing in technology that can personalize experiences across stores and digital channels while strengthening what management describes as one of the nation’s premier retail media businesses. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dollar General is broadening DG Media Network across on-site, off-site and in-store channels. The network had reached about $170 million in annual volume at the end of last year, and management expects it to grow meaningfully. Dollar General is also increasing advertising opportunities across its stores, app and website while seeking to deepen digital engagement to attract additional advertisers. Planned subscription and loyalty pilots could further support that engagement.
The retailer’s strategy extends beyond conventional digital placements. This Zacks Rank #2 company is working to improve on-site search, sponsored products and the e-commerce experience while pursuing off-site advertising spending across social media, connected TV and video. It is also opening more opportunities inside stores through its expanded in-store radio network, connecting its digital advertising capabilities with its physical footprint.
Taken together, Walmart, Target and Dollar General are scaling retail media from different starting points. Walmart is emphasizing platform breadth and global scale, Target is integrating Roundel with its digital and non-merchandise ecosystem, and Dollar General is building links across digital channels and its physical store network. The common thread is deeper customer engagement, creating more touchpoints through which advertisers can reach shoppers.
Dollar General rozšiřuje DG Media Network, který loni dosáhl asi 170 milionů USD ročního objemu. Firma chystá piloty předplatného a věrnostního programu na konec letošního roku, širší spuštění se očekává v roce 2027.
Key Takeaways Dollar General's media network reached about $170M in annual volume at the end of last year.DG is adding ad opportunities across stores, its app and website while expanding in-store radio.Dollar General plans loyalty and subscription pilots late this year, with broader rollout expected in 2027. Dollar General Corporation (DG - Free Report) is placing a greater emphasis on its DG Media Network as part of its broader digital ecosystem. Management said the network is designed to improve on-site performance through better search, sponsored products and a stronger e-commerce experience while also capturing off-site advertising spend across social media, connected TV and video.
The company is extending this reach into stores through initiatives such as its expanded in-store radio network, creating more links between digital engagement and the physical shopping experience.
The opportunity is already meaningful. Management said the business had reached about $170 million in annual volume at the end of last year and expects it to grow meaningfully. Dollar General believes its network offers advertisers access to an unduplicated audience and can deliver high returns on ad spend. Growth efforts include adding more advertising opportunities across stores, the app and the website while increasing digital engagement to attract more advertisers.
The next phase may depend on how quickly Dollar General deepens customer engagement across its digital platforms. Management plans to pilot subscription and loyalty initiatives late this year, with a broader rollout expected in 2027. The company also lists DG Media Network growth among the drivers expected to support gross margin improvement, indicating that the business is becoming more relevant to Dollar General’s profit mix.
How Walmart & Target Are Scaling Retail Media Compared With DGWalmart Inc. (WMT - Free Report) is scaling its retail media business rapidly, with global advertising growing 38% in second-quarter fiscal 2027 and Walmart U.S. advertising also up 38%. Walmart Connect, excluding VIZIO, advanced 43%, while advertising helped improve business mix and e-commerce economics. Walmart also strengthened the platform through its Vibe acquisition, aimed at expanding self-service tools and helping advertisers measure results against actual shopping behavior.
Target Corporation (TGT - Free Report) is likewise leaning on Roundel as a higher-margin growth contributor. Target said non-merchandise sales rose more than 20% in second-quarter 2026, reflecting strong growth in Roundel advertising revenues, Target Circle 360 membership revenues and Target+. Target also noted that continued growth in advertising and non-merchandise sales supported gross margin expansion. With technology investments aimed at personalization and retail media, Target is working to deepen digital engagement and expand Roundel’s opportunity.
How Does Dollar General Stack Up Against Its Industry?Dollar General has seen its shares advance 2.9% over the past three months against the industry’s 7.6% decline.
Image Source: Zacks Investment Research
What Does Dollar General’s Current Valuation Suggest?From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 15.16, lower than the industry’s 27.04. The stock is also trading below its 12-month median level of 16.04.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Dollar General?The Zacks Consensus Estimate for Dollar General’s earnings per share for the current and next fiscal year has increased by 48 cents and 29 cents to $7.86 and $8.35, respectively, over the past 30 days.
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Dollar General currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Instacart a Dollar General spouští partnerství pro stejnodenní doručení běžných potřeb přes aplikaci i web Instacart. Pilot začne v přibližně 7 000 obchodech Dollar General a pOpshelf ve šesti státech.
Instacart Marketplace expands convenient access to Dollar General's everyday low prices through same-day delivery
, /PRNewswire/ -- Instacart (Nasdaq: CART), a leading grocery technology company, and Dollar General Corporation (NYSE: DG), America's general store, today announced a new partnership to offer same-day delivery of Dollar General's everyday essentials through the Instacart App and website. The partnership will launch with a pilot at approximately 7,000 Dollar General and pOpshelf stores in six states in the coming weeks with plans to expand to approximately 20,000 stores across 48 states this fall.
Instacart and Dollar General Partner to Deliver Everyday Essentials Through the partnership, customers will be able to shop Dollar General's broad assortment of affordable products on Instacart, including food and snacks, household essentials, and health and beauty products - with delivery in as fast as one hour.
"Dollar General's vast footprint and longstanding commitment to affordability make them an important addition to the Instacart Marketplace," said Ryan Hamburger, Chief Commercial Officer at Instacart. "As we expand this partnership to approximately 20,000 Dollar General and pOpshelf stores, we'll help provide customers in communities across the country with even greater access to affordable food and everyday essentials, with the convenience of same-day delivery."
"At Dollar General, our mission is Serving Others, and we continually look for new ways to provide customers with the value and convenience they count on," said Tony Rogers, senior vice president and chief marketing officer at Dollar General. "Our partnership with Instacart provides another convenient way for customers to access affordable food, household essentials and other products they need while saving them valuable time."
Dollar General will join more than 2,200 national and local retail banners on the Instacart Marketplace.
About Instacart
Instacart is a leading grocery technology company that partners with more than 2,200 retail banners – representing nearly 100,000 stores – to transform how people shop for the groceries they need from the retailers they trust, while creating flexible earning opportunities for shoppers. Through the Instacart Marketplace, Instacart Enterprise platform, and Instacart Ads ecosystem, the company powers ecommerce, fulfillment, in-store technology, AI offerings, and advertising for partners. For more information, visit www.instacart.com/company. Maplebear Inc. is the registered corporate name of Instacart.
Dollar General cílí na roční nárůst srovnatelných tržeb kolem 6 % u Project Renovate a 3 % u Project Elevate. Do konce 2. čtvrtletí fiskálního roku 2026 dokončila 1 324 remodelací v rámci Project Renovate a 1 422 v rámci Project Elevate.
Key Takeaways DG targets about 6% annualized comp-sales lift from Renovate stores and 3% from Elevate locations.Dollar General completed 1,324 Renovate and 1,422 Elevate remodels through fiscal 2026's second quarter.DG expects about 2,000 Renovate and 2,250 Elevate projects for the year to boost established-store sales. Dollar General Corporation (DG - Free Report) continues to enhance its overall retail network execution by making strategic capital investments in its existing store footprint. Through two core store remodel initiatives — Project Renovate and Project Elevate — the retail chain is effectively unlocking higher productivity and strong same-store sales growth across its mature store base.
Project Renovate is the company’s traditional full-remodel program, generally aimed at stores that are at least seven years removed from opening or their last major remodel. The work can include adding or replacing coolers and upgrading the location to Dollar General’s latest store format. Project Elevate targets stores that are not yet old enough for a full remodel but still offer room for improvement. Project Elevate touches as much as 80% of a store through asset upgrades, merchandising changes, product adjacency adjustments and category refreshes.
The company continues to target an annualized comparable-sales lift of about 6% for Project Renovate stores and about 3% for Project Elevate locations. Through the end of the second quarter of fiscal 2026, Dollar General had completed 1,324 Project Renovate remodels and 1,422 Project Elevate remodels.
Dollar General still expects to complete about 2,000 Renovate projects and 2,250 Elevate projects for the full year. The two programs give the retailer a targeted way to extract additional sales from established stores while refreshing the shopping experience across different portions of its mature footprint.
How Walmart and Target Compare With DG on Store RemodelsWalmart Inc. (WMT - Free Report) is also investing heavily in its physical store base, completing about 220 U.S. store remodels in the second quarter of fiscal 2027. Walmart U.S. comparable sales rose 2.6%, driven by higher transactions and unit volumes. Walmart said it continues investing in remodels and omni-enabling stores, supporting a store network that increasingly serves both in-store shoppers and e-commerce fulfillment.
Target Corporation (TGT - Free Report) is seeing a clear response to store investment, with management citing reliable guest lifts after remodels. Target has more than 100 full-store remodels underway toward roughly 130 for the year. Target’s comparable store sales increased 2.7% in the quarter. Target also said these remodels help bring its latest merchandising and experience improvements across the chain, reinforcing the role of refreshed stores in driving guest engagement.
How Does Dollar General Stack Up Against Its Industry?Dollar General has seen its shares advance 6.4% over the past three months against the industry’s 7.6% decline.
Image Source: Zacks Investment Research
What Does Dollar General’s Current Valuation Suggest?From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 15.08, lower than the industry’s 26.78. The stock is also trading below its 12-month median level of 16.05.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Dollar General?The Zacks Consensus Estimate for Dollar General’s earnings per share for the current and next fiscal year has increased by 48 cents and 29 cents to $7.86 and $8.35, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Dollar General currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analytici u Dollar General drží průměrné doporučení Hold a 12měsíční cílovou cenu 135,46 USD. Firma zároveň oznámila čtvrtletní dividendu ve výši 0,59 USD na akcii.
Shares of Dollar General Corporation (NYSE:DG – Get Free Report) have been given an average rating of “Hold” by the twenty-nine ratings firms that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, eighteen have given a hold recommendation and ten have given a buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $135.4615.
DG has been the subject of several research analyst reports. Jefferies Financial Group reduced their target price on Dollar General from $155.00 to $135.00 and set a “buy” rating for the company in a research note on Wednesday, June 3rd. Morgan Stanley increased their price target on Dollar General from $132.00 to $145.00 and gave the company an “equal weight” rating in a research note on Friday, August 28th. Guggenheim reiterated a “buy” rating and issued a $140.00 price target on shares of Dollar General in a research note on Monday, August 31st. Daiwa Securities Group lowered their price target on shares of Dollar General from $136.00 to $111.00 and set a “neutral” rating on the stock in a report on Thursday, June 4th. Finally, Argus raised their price objective on shares of Dollar General from $165.00 to $170.00 and gave the stock a “buy” rating in a research report on Friday, September 4th.
Check Out Our Latest Report on DG
Dollar General News Roundup Here are the key news stories impacting Dollar General this week: Positive Sentiment: Dollar General CEO Todd Vasos said the retailer is attracting more shoppers earning over $100,000 annually, suggesting the company’s value proposition is expanding beyond lower-income consumers. The availability of roughly 2,000 products priced at $1 or less could support traffic and sales if inflation and fuel costs remain elevated. Fortune article Positive Sentiment: Zacks Research raised its fiscal 2029 earnings-per-share forecast for Dollar General, providing a favorable longer-term signal for the company’s earnings outlook. American Banking News article Neutral Sentiment: Value-oriented retailers are competing aggressively for budget-conscious shoppers. Recent industry coverage highlighted traffic gains at rivals such as Target and Five Below, which could limit Dollar General’s ability to convert increased demand into sustained market-share gains. Negative Sentiment: The influx of higher-income shoppers is also a warning sign about consumer finances: households that traditionally would not rely on dollar-store merchandise are increasingly seeking discounts because of high fuel prices and inflation. That may boost near-term traffic but can pressure discretionary spending, product mix and margins. TheStreet article Negative Sentiment: Executive Vice President Reardon sold 5,578 Dollar General shares for approximately $733,000, representing about 8% of the executive’s direct holdings before the transaction. While one insider sale does not establish a trend, it may weigh modestly on sentiment. Dollar General Stock Performance Shares of DG opened at $122.34 on Friday. The firm has a 50-day moving average of $124.65 and a 200-day moving average of $120.41. Dollar General has a one year low of $95.11 and a one year high of $158.23. The company has a market cap of $26.99 billion, a PE ratio of 15.91, a price-to-earnings-growth ratio of 1.67 and a beta of 0.23. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.21 and a quick ratio of 0.31.
Dollar General (NYSE:DG – Get Free Report) last issued its earnings results on Thursday, August 27th. The company reported $2.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.01 by $0.47. Dollar General had a net margin of 3.90% and a return on equity of 18.93%. The company had revenue of $11.29 billion for the quarter, compared to analysts’ expectations of $11.20 billion. During the same period in the prior year, the firm earned $1.86 EPS. Dollar General’s quarterly revenue was up 5.2% compared to the same quarter last year. Dollar General has set its FY 2026 guidance at 7.800-8.000 EPS. As a group, equities analysts forecast that Dollar General will post 7.68 earnings per share for the current year.
Dollar General Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 20th. Investors of record on Tuesday, October 6th will be paid a $0.59 dividend. The ex-dividend date is Tuesday, October 6th. This represents a $2.36 annualized dividend and a yield of 1.9%. Dollar General’s payout ratio is 30.69%.
Institutional Investors Weigh In On Dollar General A number of hedge funds and other institutional investors have recently modified their holdings of DG. Geode Capital Management LLC increased its holdings in shares of Dollar General by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 5,707,809 shares of the company’s stock worth $754,857,000 after buying an additional 42,936 shares in the last quarter. Norges Bank acquired a new stake in shares of Dollar General during the 4th quarter valued at $133,431,000. KBC Group NV boosted its holdings in shares of Dollar General by 63.8% during the 1st quarter. KBC Group NV now owns 60,896 shares of the company’s stock valued at $7,230,000 after acquiring an additional 23,710 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in Dollar General during the 2nd quarter worth $162,412,000. Finally, Royal London Asset Management Ltd. grew its position in Dollar General by 30.7% during the 2nd quarter. Royal London Asset Management Ltd. now owns 638,681 shares of the company’s stock worth $73,519,000 after acquiring an additional 149,869 shares during the last quarter. Institutional investors and hedge funds own 91.77% of the company’s stock.
Dollar General Company Profile (Get Free Report)
Dollar General Corporation (NYSE: DG) is a discount retailer that operates stores offering everyday essentials at low prices. Its merchandise assortment includes consumable products such as food, snacks, cleaning supplies, paper products, and personal-care items, along with seasonal goods, basic home products, apparel, and select health and beauty products.
The company serves primarily rural and suburban communities, with stores located throughout the United States. Dollar General also operates related retail formats, including DG Market, DGX, and pOpshelf, which offer assortments tailored to different shopping needs and locations.
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Dollar General očekává, že jeho klíčoví zákazníci zůstanou pod tlakem až do druhé poloviny roku 2026, a dál sází na růst doručování a levné zboží za 1 USD. Firma zároveň potvrdila dlouhodobý cíl 2% až 3% růstu srovnatelných tržeb v prodejnách a 6% až 7% provozní ziskové marže do roku 2028.
Dollar General and Dollar Tree Are Recovering, But Not for the Same ReasonDollar General NYSE: DG executives said the retailer expects its core customers to remain under pressure through the second half of 2026, while the company continues to pursue margin recovery, delivery expansion and value-focused merchandising initiatives.
Chief Executive Officer Todd Vasos said sustained inflation and higher fuel prices have affected shoppers across income groups. Dollar General’s core consumer, generally those earning $40,000 to $45,000 or less, has been visiting stores more frequently but purchasing fewer items during each trip, he said.
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3 Retail Stocks to Watch After a Big Consumer Earnings Week“Any time that gas price gets anywhere close to $4 and then crests $4 a gallon, the customer changes their shopping behavior,” Vasos said. He added that middle- and upper-middle-income consumers are increasingly displaying similar behaviors, while some customers earning more than $100,000 say they no longer feel like high-income consumers because of broader cost pressures.
Vasos said Dollar General is within five miles of 75% of the U.S. population, positioning its stores as a convenient option for shoppers looking to limit driving. He said the company does not see a structural development that would materially improve conditions for its core consumer in the second half, although lower gasoline prices could provide some relief.
Value assortment and customer retention Five Below’s Turnaround Is Working—But Has the Stock Run Too Far?The company is emphasizing its $1 merchandise offering as customers seek affordability. Vasos said Dollar General has more than 2,000 items priced at $1 or less, including products throughout stores and in its Value Valley section.
Chief Operating Officer Emily Taylor said Value Valley comparable sales rose 16% in the second quarter. The company has expanded the assortment in the section, added off-shelf displays and increased its seasonal $1 assortment for the second half by 40% from a year earlier, she said.
Dollar General also recently introduced a frozen-food door containing $1 products and plans to add more of those doors during the second half of the year, Vasos said.
On pricing, Vasos said the company seeks to balance data-driven pricing with judgment and views price increases as a last resort. He said Dollar General’s price gaps relative to mass, drug and grocery competitors have remained consistent over time, and the company uses its scale and limited-SKU model in negotiations with consumer packaged goods suppliers.
Taylor said the retailer has historically retained customers who begin shopping at Dollar General during difficult economic periods, citing past periods including 2008, 2009 and 2013. She said targeted marketing offers based on customer purchase patterns could further support retention.
Margins, supply chain and delivery Executive Vice President and Chief Financial Officer Donny Lau said the company remains confident in its long-term targets of 2% to 3% same-store sales growth and a 6% to 7% operating margin by 2028.
Lau said Dollar General had previously outlined a goal of 270 basis points of gross-margin expansion over a three- to four-year period and delivered more than 100 basis points of margin expansion last year. He said the company also delivered 80 basis points of shrink improvement last year, matching its previously identified opportunity over a two- to three-year timeframe.
Other margin drivers include lower damages, growth in non-consumables, the DG Media Network, category management and supply-chain productivity, according to Lau. He said non-consumables have outgrown consumables for six consecutive quarters, while the company is targeting non-consumables at 20% of sales, up from roughly 18% to 18.2% currently.
In supply chain, Lau said Dollar General expects continued fixed-cost leverage as sales grow and sees productivity opportunities through information technology. About 50% of the company’s outbound transportation needs are handled by its private fleet, a share the company expects to increase over time, he said.
Executives also discussed artificial intelligence as a potential source of future productivity, particularly in supply chain, inventory and store operations. Lau said the company’s long-term framework does not include AI-related benefits, making any resulting gains potential upside.
Delivery contributed 40 basis points to comparable-sales growth in the second quarter, Taylor said. Dollar General offers both marketplace and first-party delivery and continues to see more than 80% incrementality from the service, she said. More than 1 million customers were first introduced to Dollar General through delivery and later shopped in physical stores, according to Taylor.
The retailer plans to pilot a delivery subscription offering at the end of 2026 and expects to scale it next year. Taylor said increased digital engagement could also support the DG Media Network, which generated $170 million in retail-media volume last year.
Leadership transition Vasos, who said he will leave the CEO role in January 2027, said he expects to remain a senior advisor and board member through at least April 1 to support the transition. The company selected JJ Fleeman, formerly a U.S. operating chief executive within Ahold Delhaize, as Vasos’ successor.
Vasos said Dollar General’s board and management team remain aligned behind the company’s current priorities and noted that the company has strengthened its senior leadership team in recent years. He said Fleeman has been briefed on the company’s strategic initiatives ahead of joining Dollar General.
About Dollar General (NYSE:DG)Dollar General Corporation NYSE: DG is a discount retailer that operates stores offering everyday essentials at low prices. Its merchandise assortment includes consumable products such as food, snacks, cleaning supplies, paper products, and personal-care items, along with seasonal goods, basic home products, apparel, and select health and beauty products.
The company serves primarily rural and suburban communities, with stores located throughout the United States. Dollar General also operates related retail formats, including DG Market, DGX, and pOpshelf, which offer assortments tailored to different shopping needs and locations.
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For the quarter ended July 2026, Dollar General (DG - Free Report) reported revenue of $11.29 billion, up 5.2% over the same period last year. EPS came in at $2.23, compared to $1.86 in the year-ago quarter.
The reported revenue represents a surprise of +1% over the Zacks Consensus Estimate of $11.18 billion. With the consensus EPS estimate being $2.00, the EPS surprise was +11.5%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dollar General performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Ending store count: 21,148 compared to the 21,152 average estimate based on 22 analysts.Total selling square footage: 161.52 Msq ft versus the 22-analyst average estimate of 161.41 Msq ft.Same-Store Sales growth: 3.5% compared to the 2.6% average estimate based on 22 analysts.Store closings: 33 versus 24 estimated by 19 analysts on average.New store openings: 126 versus 132 estimated by 19 analysts on average.Net Sales per square foot: $69.90 versus the 17-analyst average estimate of $69.13.Net Sales Per Store: $0.53 million compared to the $0.53 million average estimate based on 15 analysts.Net Sales by Category- Consumables: $9.26 billion versus $9.21 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +5% change.Net Sales by Category- Seasonal: $1.19 billion compared to the $1.15 billion average estimate based on seven analysts. The reported number represents a change of +7.4% year over year.Net Sales by Category- Home products: $536.57 million versus the seven-analyst average estimate of $532.85 million. The reported number represents a year-over-year change of +4.8%.Net Sales by Category- Apparel: $303.09 million versus the seven-analyst average estimate of $300.55 million. The reported number represents a year-over-year change of +4.5%.View all Key Company Metrics for Dollar General here>>>
Shares of Dollar General have returned -4.6% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Dollar General za čtvrtletí překonala odhady, zvýšila celoroční výhled a akcie ve čtvrtek posílily o 5 %. Dollar Tree naopak ve stejný den klesla o 3 %.
Dollar General and Dollar Tree are splitting sharply in the same session, and the direction each name is moving tells a complicated story about whether discount retail is recovering or simply reshuffling its winners.
Dollar General (NYSE:DG | DG Price Prediction) stock is leading the discount-retail sector higher Thursday after a clean second-quarter beat and a raised full-year outlook, while Dollar Tree (NASDAQ:DLTR) stock is going the other way in the same session. The split is telling because retail as a whole is trading lower on a day equities are grinding higher, so the group isn’t simply rotating into defensives.
Dollar General stock is up 5% to $128.90, clawing back part of a decline that had left the shares down 6% year to date through Wednesday’s close. Meanwhile, Dollar Tree stock is down 3% to $128.76, giving back a lead that had it up 7% year to date through Wednesday’s close.
The SPDR S&P Retail ETF (NYSEARCA:XRT) is down 1% to $86.94, dragged by dollar-store weakness elsewhere in the group. At the same time, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.8% to $772.19, sharpening the read that Dollar General is moving on its own result rather than reflecting a full-category rerating.
Raised Outlook and Margin Expansion Drive the Move Dollar General posted net sales of $11.3 billion for its Q2 fiscal 2026, up 5.2% year over year and ahead of the $11.19 billion consensus. Its earnings per share of $2.48 rose 33.3% year over year and topped the $2 consensus by a wide margin, extending a run of outsized beats the retailer has strung together across recent quarters.
Same-store sales at Dollar General rose 3.5%, driven by a 2% increase in customer traffic and a 1.5% rise in average transaction value. Operating profit at Dollar General jumped 29.2% to $769.2 million, and gross margin expanded 127 basis points to 32.6% on lower shrink, lower distribution costs, and a favorable tariff-refund contribution.
Traffic growth at Dollar General has now stretched to the fifth consecutive quarter, and CEO Todd Vasos pointed on the earnings call to “the strength and broad appeal of our unique combination of value and convenience.” Management also noted that sales performance was strong at the beginning of Q3, which underpins the more confident reset in guidance.
Management raised Dollar General’s full-year guidance to EPS of $7.80 to $8 against a $7.39 consensus, with comparable sales growth of 2.5% to 2.9% and net sales growth of 4% to 4.3%. The company also plans to repurchase up to $700 million of stock in the back half and declared a quarterly dividend of $0.59 per share, adding a capital-return leg to a fundamentals story that was already improving.
Dollar Tree Sells Off on the Same Day The session is separating the two dollar-store names in a way that matters for the read on the low-income consumer. Both Dollar General and Dollar Tree would typically be catching a bid together if the discount shopper were broadly strengthening, given how tightly the two names usually trade. Instead, Dollar Tree is falling while Dollar General rallies on beat-and-raise numbers, which is the opposite of how a category recovery normally prints.
Dollar Tree entered Thursday the better performer of the two names for the year, so today’s split is a partial reversal of that ordering rather than a confirmation of it. The market’s initial interpretation appears to be that Dollar General is taking share rather than riding a rising tide, with traffic and ticket both contributing to the winning name’s comp lift and a retail ETF that’s trading lower alongside the Dollar Tree reaction.
What to Watch Next Investors can watch for whether Dollar General stock holds this rally into the close, particularly given the size of the raise relative to the Street’s prior EPS bar and the fact that the shares are still working off a year-to-date drawdown. The $700 million buyback plan and $0.59 quarterly dividend add capital-return support underneath a fundamentals picture that already screens strongly on margin and traffic.
For those already long Dollar General shares, trimming into strength is a reasonable way to lock in part of today’s gain while keeping their core positions intact for the raised outlook. New buyers may want to size their positions modestly given the stock’s year-to-date volatility, since today’s rally only closes part of the yearly gap and the peer split raises fresh questions about the broader consumer backdrop.
Shareholders of Dollar Tree might can keep an eye on whether the peer split narrows once the initial reaction settles, because a persistent divergence would reinforce the share-take reading rather than a category-recovery one. Sizing on either name should reflect that today’s session has moved both stocks in ways that leave their year-to-date performance closer than it was heading into the print, and the tone of the retail group argues for measured exposure rather than aggressive adds.
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Dollar General rozšiřuje nabídku položek za 1 USD; 600 položek v „Value Valley“ zvýšilo srovnatelné tržby o 16 % ve 2. čtvrtletí, oproti 3,5 % u tržeb v prodejnách.
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Dollar General plans to increase its selection of $1 items by the end of the year. Jakub Porzycki/NurPhoto via Getty Images Dollar General is doubling down on the $1 price point.
A selection of 600 items priced at $1 each, which the chain calls "Value Valley," had comparable sales growth of 16% during the company's second quarter — a much faster clip than broader same-store sales growth of 3.5%, it said on Thursday.
In total, Dollar General stocks about 2,000 items that cost $1 each. It expects to grow that number by 40% in the second half of 2026 in time for the holiday shopping season, COO Emily Taylor said on the retailer's earnings call.
Expect that selection to grow "even more so into 2027," CEO Todd Vasos said. "We have got real plans to expand that $1 price point to offer even more value for the consumer," he added.
Dollar stores used to be true to their name, with everything on their shelves priced at $1. Inflation has changed that, though: In 2021, Dollar Tree raised prices on most items to $1.25 and has since experimented with items priced at several dollars each.
That's a different direction than Dollar General appears to be taking, said Arielle Feger, a senior analyst at EMARKETER, Business Insider's sister company.
While Dollar General has long sold items that cost well over $1 each, many of those items are food and other consumables that draw people into the store, Feger said. The chain began adding freezers stocked with food items priced at $1 each to its stores earlier this year, Vasos said on the company's last earnings call in June.
Dollar Tree's $1 item selection, by contrast, skews more toward discretionary items, such as home decor and toys.
Dollar General's strategy is similar to the classic grocery store strategy of selling eggs and milk as cheaply as possible — even at a loss, potentially — to boost overall sales, Feger said.
"It gets people in the door, and it gets them to continue to come back," she said.
That strategy is particularly meaningful to customers who are trying to save money, Vasos said on Thursday's earnings call.
Dollar General's average customer is "still gainfully employed" and "is seeing some gains in her income levels," the CEO said. But inflation and rising gas prices this year have offset that income gain, Vasos said, leading many customers to visit its stores more often and buy less each trip.
By expanding its selection of $1 items, Dollar General will likely continue to attract customers, Feger said.
"Consumers are habitual," she said. "We go to the same places, we expect the same things."
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Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
Key Takeaways Dollar General's Q2 consensus sees $11.17B in revenues and $2.00 EPS, up 4.2% and 7.5% year over year.Value-seeking traffic, merchandising gains and shrink reduction may support DG's sales and margins.DG trades at 15.96 times forward earnings, below the industry, S&P 500 and its 12-month median. Dollar General Corporation (DG - Free Report) is set to report second-quarter fiscal 2026 earnings results on Aug. 27, before the opening bell. Investors will closely assess the discount retailer’s ability to drive traffic and sales growth in a still-challenging consumer environment, along with signs of sustained margin improvement and its outlook for the remainder of the year.
The Zacks Consensus Estimate for second-quarter revenues stands at $11.17 billion, indicating a 4.2% increase from the prior-year reported figure. On the earnings front, the consensus estimate has been stable at $2.00 per share over the past 30 days and implies a year-over-year jump of 7.5%.
Dollar General has a trailing four-quarter earnings surprise of 21%, on average. In the last reported quarter, DG surpassed the Zacks Consensus Estimate by 5.8%.
Image Source: Zacks Investment Research
What the Zacks Model Predicts for DGAs investors prepare for Dollar General's second-quarter announcement, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Dollar General this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors to Note Ahead of DG’s Q2 EarningsDollar General’s second-quarter performance is likely to have benefited from continued customer traffic and growing demand for value. The company entered the quarter with sales trends holding up, while trade-in activity from higher-income households was accelerating as inflation and elevated fuel costs encouraged consumers to seek lower-priced alternatives. Dollar General’s convenient store footprint, competitive everyday pricing and targeted promotions should have helped it attract both its core customer and shoppers trading down from other retail channels. Its emphasis on affordability and convenience is likely to have attracted customers looking to stretch household budgets.
The traffic backdrop is likely to have been reinforced by Dollar General’s merchandising and customer-experience initiatives. The company has been strengthening its entry-price-point assortment, private brands and Value Valley offering while maintaining momentum in non-consumables. At the same time, delivery has been fortifying Dollar General’s convenience proposition, as customers using the service tend to place larger orders and shop with the company more frequently. Continued investments in store remodels through Project Renovate and Project Elevate also appear positioned to improve the shopping experience and support productivity across the mature store base.
Beyond sales, ongoing gross-margin initiatives are likely to have supported profitability. Dollar General entered the quarter with momentum in shrink reduction and lower inventory damages, while category-management efforts, supply-chain productivity, non-consumables merchandising and the DG Media Network remained important margin drivers. The company also ended the first quarter of fiscal 2026 with inventory at a level it considered appropriate to support sales growth and improved in-stock availability. Together, better inventory discipline, shrink improvement and greater supply-chain efficiency may have helped offset some cost pressures and supported the earnings picture.
Even so, the operating backdrop remained challenging. Dollar General’s core customers continued to face pressure from inflation and reduced government assistance, prompting some shoppers to cut back on household spending and manage budgets more tightly. Such pressure can increase trip frequency while constraining basket size, particularly among lower-income customers. Higher promotional activity and any SG&A deleverage could have tempered the benefit from the company’s margin-improvement initiatives during the quarter.
Dollar General Stock Price PerformanceDollar General, which competes with Target Corporation (TGT - Free Report) and Costco Wholesale Corporation (COST - Free Report) , has seen its shares gain 9.9% over the past year compared with the industry’s rise of 11.5%. Shares of Target and Costco have advanced 0.7% and 70.3%, respectively.
Image Source: Zacks Investment Research
Does DG Present a Strong Case for Value Investing?Dollar General is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 15.96. This valuation reflects a discount compared to the industry’s average of 30.14 and the S&P 500's P/E of 20.43. The stock also appears undervalued compared to its 12-month median P/E level of 16.21.
Dollar General is trading at a discount to Target (with a forward 12-month P/E ratio of 17.08) and Costco (42.19).
Image Source: Zacks Investment Research
Final Words on Dollar General StockDollar General enters its second-quarter earnings release with several encouraging fundamentals, including resilient traffic trends, growing appeal among value-seeking consumers and continued progress on merchandising, inventory and margin initiatives. However, pressure on its core customer, higher promotional activity and lingering cost headwinds warrant some caution, while the earnings setup does not provide a clear signal of a beat this time. The stock’s discounted valuation adds some support to the investment case. Current shareholders may consider holding their positions, while prospective investors could wait for the earnings release before taking a fresh position.
Dollar General v poslední seanci klesl o 2,67 % na 120,14 USD, zatímco S&P 500 vzrostl o 0,38 %. Investoři sledují nadcházející výsledky, čeká se EPS 2 USD a výnosy 11,17 miliardy USD.
In the latest close session, Dollar General (DG - Free Report) was down 2.67% at $120.14. This change lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.9%.
Prior to today's trading, shares of the discount retailer had gained 6.06% outpaced the Retail-Wholesale sector's gain of 0.77% and the S&P 500's gain of 1.27%.
Market participants will be closely following the financial results of Dollar General in its upcoming release. The company is expected to report EPS of $2, up 7.53% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.17 billion, indicating a 4.16% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.36 per share and a revenue of $44.4 billion, representing changes of +7.45% and +3.92%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dollar General. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Dollar General currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Dollar General is currently exchanging hands at a Forward P/E ratio of 16.76. Its industry sports an average Forward P/E of 27.98, so one might conclude that Dollar General is trading at a discount comparatively.
We can additionally observe that DG currently boasts a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 2.46 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 7, this industry ranks in the top 3% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Jim Cramer uvedl, že rostoucí ceny pohonných hmot znovu přitahují hedgeové fondy k Dollar General. Firma navíc v 1. čtvrtletí zvýšila tržby na 10,79 miliardy USD, EPS na 2,00 USD i celoroční výhled hospodaření na 7,20 až 7,45 USD.
Jim Cramer used his Monday CNBC Stop Trading segment to flag a familiar play he’s seeing coming back into focus. Cramer noted that when the cost of living squeezes household budgets, capital rotates into discount retailers, and the hedge fund crowd tends to get there first. That’s why he says he’s keeping an eye on Dollar General (NYSE:DG | DG Price Prediction).
Why Rising Gas Prices Send Hedge Funds Into Dollar General Jim Cramer bluntly connected the dots he sees between rising oil prices and soaring discount retailer performance. “When things go up for the consumer, we go back to these stocks,” he said, before laying out his trade idea: “Dollar General just is a favorite of the hedge fund crowd. It’s kind of an algorithm that says, oh, oil goes up, gasoline therefore goes up, go buy Dollar General.”
He also pointed to Dollar Tree’s upgrade last week, which he said drove the stock from $85 to $130 in a couple of months, and flagged Walmart as the validation to watch: “I’m waiting for it to impact Walmart, which is a big winner.”
The Consumer Squeeze Is Reviving the Trade-Down Economy WTI crude sits at above $78 per barrel, well off the 12-month high of $114.58 on April 7, 2026, and the U.S. regular gasoline average has eased to $3.78 per gallon. But retail pump prices spent much of the spring above $4.50, and University of Michigan consumer sentiment collapsed to 44.8 in May 2026, approaching recessionary levels. Trade-down behavior into value shopping is exactly what that combination could produce.
Dollar General’s Q1 FY2027 report filed on June 2, mapped directly onto Cramer’s thesis. Diluted EPS came in at $2.00 versus $1.88 consensus, revenue was $10.79 billion, same-store sales rose 2.0%, and gross margin expanded 65 basis points to 31.6%.
CEO Todd Vasos said results “exceeded our expectations as strong operating margin expansion more than offset the impact of severe winter weather and higher fuel costs.” Management then raised FY2026 EPS guidance to $7.20-$7.45.
Dollar General has climbed 8.7% over the past month and was up 4.73% on the day of Cramer’s segment, trading at $124.55. Shares still carry a modest trailing P/E ratio of 17.
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Dollar Tree, Walmart, and Five Below As Other Potential Beneficiaries Dollar Tree (NASDAQ:DLTR) is up 13.23% over the past month. Q1 delivered adjusted EPS of $1.74 versus $1.55 consensus on revenue of $4.98 billion, and management raised the FY26 range to $6.70 to $7.10.
Walmart (NYSE:WMT) reported Q1 FY2027 results showing Walmart U.S. comps up 4.1% ex-fuel and global e-commerce up 26%, with share gains skewing towards upper-income demographics. Walmart trades at a P/E near 41, and shares are down 5.55% over the past month.
Five Below (NASDAQ:FIVE) reported Q1 net sales growth of 32.5% and comparable-store sales growth of 22.7%, with FY26 EPS guidance of $8.65 to $9.05. Shares are up 45.48% over the past year.
What to Watch Next Cramer’s broader argument is that rising household costs could push more consumers toward discount retailers, benefiting Dollar General, Dollar Tree, Walmart, and Five Below. Dollar General’s improving margins and raised earnings guidance suggest that shift may already be underway.
If Walmart’s upcoming results show stronger trade-down activity, the trend could be developing into a broader defensive investment theme rather than a short-term hedge fund trade.
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Dollar General ve 1. čtvrtletí překonala odhad EPS a zvýšila výhled EPS pro fiskální rok 2026 na 7,20–7,45 USD. Tržby sice odhad mírně minuly, ale meziročně vzrostly o 3,4 %.
It has been about a month since the last earnings report for Dollar General (DG - Free Report) . Shares have added about 9.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dollar General due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Dollar General Beats Q1 Earnings Estimates, Raises FY26 ViewDollar General reported first-quarter fiscal 2026 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line beat the same. Both net sales and earnings increased year over year, reflecting solid execution of its strategic initiatives, positive customer traffic trends and operating margin expansion, which more than offset the impact of severe winter weather and higher fuel costs.
The company witnessed a rise across all major merchandise categories, supported by same-store sales growth and contributions from new stores. Better-than-expected first-quarter bottom-line performance prompted management to lift its fiscal 2026 earnings view.
More on DG’s Q1 PerformanceDollar General posted quarterly earnings of $2.00 per share, which surpassed the Zacks Consensus Estimate of $1.89. The bottom line increased 12.4% from $1.78 reported in the year-ago quarter.
Net sales of $10,787 million rose 3.4% year over year. Revenues narrowly missed the Zacks Consensus Estimate of $10,822 million. The increase was driven by positive contributions from new stores and growth in same-store sales, partially offset by store closures.
Same-store sales improved 2%, reflecting a 1.4% rise in customer traffic and a 0.5% increase in average transaction amount. The quarter marked positive comparable-sales growth across all major categories, including consumables, seasonal, home products and apparel.
DG’s Key Metrics & Margin InsightsDollar General’s consumables category generated sales of $8,892.5 million, up 3% from the prior-year quarter. Seasonal sales increased 6% to $1,084.3 million, while home products sales rose 3.1% to $523 million. Apparel sales advanced 6.7% to $287.2 million.
Gross margin expanded 65 basis points to 31.6%, benefiting from higher inventory markups, lower shrink and reduced inventory damages, partly offset by increased markdowns and transportation costs.
SG&A expenses, as a percentage of sales, deleveraged 25 basis points to 25.7%. The increase mainly stemmed from higher depreciation and amortization expenses, utilities and property taxes, partly offset by lower incentive compensation.
Dollar General’s operating profit increased 10.8% to $638.5 million. Operating margin expanded 40 basis points to 5.9%.
DG’s Financial SnapshotDollar General ended the quarter with cash and cash equivalents of $1,353.1 million, long-term obligations of $4,563.1 million and total shareholders’ equity of $8,843.3 million.
Net cash provided by operating activities was $716.2 million in the first quarter. Capital expenditures totaled $352 million, including $203 million for improvements, upgrades, remodels and relocations of existing stores, $73 million for new-store facilities, $62 million for distribution and transportation-related projects and $12 million for information systems and technology-related projects.
DG’s Store UpdatesDuring the quarter, Dollar General opened 190 new stores in the United States and five new stores in Mexico. It remodeled 659 stores through Project Renovate and 711 stores through Project Elevate, while relocating six stores.
Management reiterated plans to execute nearly 4,730 real estate projects in fiscal 2026, including about 450 new stores in the United States and 10 new stores in Mexico, nearly 2,000 Project Renovate remodels, approximately 2,250 Project Elevate remodels and about 20 store relocations.
What to Expect From DG in Fiscal 2026?Dollar General raised its fiscal 2026 earnings per share guidance to $7.20-$7.45 from the prior view of $7.10-$7.35. The company continues to expect net sales growth of 3.7-4.2% and same-store sales growth of 2.2-2.7% for fiscal 2026. Capital expenditures are still projected in the $1.4-$1.5 billion range.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, Dollar General has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dollar General has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerDollar General is part of the Zacks Retail - Discount Stores industry. Over the past month, Target (TGT - Free Report) , a stock from the same industry, has gained 4.4%. The company reported its results for the quarter ended April 2026 more than a month ago.
Target reported revenues of $25.44 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $1.71 for the same period compares with $1.30 a year ago.
For the current quarter, Target is expected to post earnings of $2.21 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Target. Also, the stock has a VGM Score of A.
Dollar General v 1. čtvrtletí zvýšil hrubou marži na 31,6 % a provozní marži na 5,9 %. Provozní zisk vzrostl o 10,8 % díky nižším ztrátám a lepšímu řízení zásob.
Key Takeaways Dollar General's Q1 gross margin rose 65 basis points to 31.6% on operational gains.DG benefited from higher markups, lower shrink and reduced damages despite cost pressures.Operating margin expanded 40 basis points to 5.9%, while operating profit rose 10.8%. Dollar General Corporation’s (DG - Free Report) first-quarter fiscal 2026 results indicate that its margin recovery efforts are gaining momentum. While sales growth remained steady, the more notable development was the continued expansion in profitability, driven by multiple operational initiatives rather than top-line acceleration alone.
Gross margin improved 65 basis points year over year to 31.6%, reflecting benefits from higher inventory markups, lower shrink and reduced inventory damages. These gains more than offset increased markdown activity and higher transportation costs. Management highlighted that shrink mitigation remained a significant contributor, delivering a 28-basis-point reduction versus last year despite already lapping a 61-basis-point improvement in the prior-year quarter.
The improvement was not limited to one area. Dollar General pointed to stronger category management, better inventory controls and lower damages as additional drivers of margin expansion. Management said pricing was not a meaningful contributor to first-quarter markup gains, suggesting the increase stemmed primarily from operational execution rather than broad-based price increases.
The gross margin improvement flowed through to operating results. Operating margin expanded 40 basis points to 5.9%, while operating profit climbed 10.8% year over year. This performance came despite higher-than-anticipated fuel costs, underscoring the strength of the company’s internal margin initiatives.
Management also expressed confidence that margin drivers such as shrink reduction, damage improvement, supply-chain productivity, category management and DG Media Network growth still have room to contribute going forward. The first quarter, therefore, reinforced that Dollar General’s margin expansion story is being supported by a broader and more durable set of operational levers.
How Dollar General Compares With Walmart and TargetWalmart Inc. (WMT - Free Report) reported a 6-basis-point increase in the consolidated gross profit rate to 24.3%, supported by favorable merchandise and business mix, including growth in higher-margin advertising operations. At the U.S. segment level, Walmart delivered a 29-basis-point gross margin jump, benefiting from inventory management, digital advertising growth and improved category mix. Management also highlighted that general merchandise contributed favorably to gross margin expansion for the first time in 18 quarters, underscoring the improving profitability profile at Walmart.
Meanwhile, Target Corporation (TGT - Free Report) posted a first-quarter gross margin rate of 29%, up from 28.2% a year ago. The improvement was driven by lower markdown rates, stronger advertising and other non-merchandise revenue streams, and better productivity across supply chain facilities. Target also expanded its adjusted operating margin rate to 4.5% from 3.7% last year, reflecting the benefits of improved merchandise profitability. While Target continues to invest in labor, training and marketing, its latest results indicate that operational improvements are helping offset these costs.
What the Latest Metrics Say About Dollar GeneralDollar General has seen its shares tumble 10.2% over the past three months against the industry’s rise of 4.7%.
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From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 14.97, lower than the industry’s ratio of 32.05. However, it is trading below its 12-month median level of 17.29.
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The Zacks Consensus Estimate for Dollar General’s current financial-year sales and earnings per share implies year-over-year growth of 3.9% and 7.3%, respectively. For the next fiscal year, the consensus estimate indicates a 4.1% rise in sales and 8.8% growth in earnings.
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Dollar General currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
