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 You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
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.
