Dollar General reported a 13.3% increase in net income for the first quarter (Q1) ended 1 May 2026, alongside higher sales, operating profit and diluted earnings per share (EPS), and raised its diluted EPS guidance for fiscal 2026 (FY26).
Net income rose to $444.1m in the quarter while net sales climbed 3.4% year-on-year to $10.78bn, driven by contributions from new stores and growth in same-store sales
Operating profit increased 10.8% to $638.5m. Diluted earnings per share (EPS) grew 12.4% to $2 from $1.78. Same-store sales increased 2%, reflecting a 1.4% rise in customer traffic and a 0.5% increase in average transaction value.
Gross profit margin improved to 31.6% from 31%, supported by higher inventory markups and decreased shrink and inventory damages, partially offset by increased markdowns and transportation costs. Capital expenditure during the quarter totalled $352m. Dollar General opened 190 stores in the US and five stores in Mexico, remodelled 659 stores through Project Renovate and 711 stores through Project Elevate, and relocated six stores.