Dollar General Corporation Reports Third Quarter 2025 Results
GOODLETTSVILLE, Tenn.--( BUSINESS WIRE)--Dollar General Corporation (NYSE: DG) today reported financial results for its fiscal year 2025 third quarter (13 weeks) ended October 31, 2025.
“I want to thank our team for their work serving our customers and communities, which led to another quarter of strong financial results,” said Todd Vasos, Dollar General’s chief executive officer. “These results were highlighted by EPS growth of 44%, strong operating margin performance, and balanced sales growth, including market share gains across both consumable and non-consumable categories.”
“We are especially pleased with the continued progress we are making against our key initiatives and are excited about the opportunities ahead of us at Dollar General, including the 2026 real estate growth plans we announced today. As America’s neighborhood general store in nearly 21,000 locations, we are focused on continuing to enhance our value and convenience proposition to serve both new and existing customers. Looking ahead, we are confident in our long-term financial framework and our ability to create sustainable long-term value for our customers, associates, and shareholders.”
Third Quarter Fiscal 2025 Highlights
Net sales increased 4.6% to $10.6 billion in the third quarter of 2025 compared to $10.2 billion in the third quarter of 2024. The net sales increase was driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures. Same-store sales increased 2.5% compared to the third quarter of 2024, reflecting a 2.5% increase in customer traffic and a flat average transaction amount. Same-store sales in the third quarter of 2025 included growth in each of the consumables, seasonal, home products, and apparel categories.
Gross profit as a percentage of net sales was 29.9% in the third quarter of 2025 compared to 28.8% in the third quarter of 2024, an increase of 107 basis points. This gross profit rate increase was driven primarily by higher inventory markups and lower shrink; partially offset by an increased LIFO provision.
Selling, General and Administrative Expenses (“SG&A”) as a percentage of net sales were 25.9% in the third quarter of 2025 compared to 25.7% in the third quarter of 2024, an increase of 25 basis points. The primary expenses that were a higher percentage of net sales in the third quarter of 2025 were incentive compensation, repairs and maintenance, and utilities; partially offset by a decrease in hurricane-related costs.
Operating profit for the third quarter of 2025 increased 31.5% to $425.9 million compared to $323.8 million in the third quarter of 2024.
Interest expense for the third quarter of 2025 decreased 17.6% to $55.9 million compared to $67.8 million in the third quarter of 2024.
The effective income tax rate in the third quarter of 2025 was 23.6% compared to 23.2% in the third quarter of 2024.
The Company reported net income of $282.7 million for the third quarter of 2025, an increase of 43.8% compared to $196.5 million in the third quarter of 2024. Diluted EPS increased 43.8% to $1.28 for the third quarter of 2025 compared to diluted EPS of $0.89 in the third quarter of 2024.
Merchandise Inventories
As of October 31, 2025, total merchandise inventories, at cost, were $6.7 billion compared to $7.1 billion as of November 1, 2024, a decrease of 8.2% on an average per-store basis.
Capital Expenditures
Total additions to property and equipment in the 39-week period ended October 31, 2025 were $1.0 billion, including approximately: $541 million for improvements, upgrades, remodels and relocations of existing stores; $211 million related to store facilities, primarily for leasehold improvements, fixtures and equipment in new stores; $192 million for distribution and transportation-related projects; and $48 million for information systems upgrades and technology-related projects. During the third quarter of 2025, the Company opened 196 new stores, remodeled 651 stores through Project Elevate and 524 stores through Project Renovate, and relocated 8 stores.
Dividend
On December 2, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.59 per share on the Company’s common stock, payable on or before January 20, 2026, to shareholders of record on January 6, 2026. While the Board of Directors currently intends to continue regular cash dividends, the declaration and amount of future dividends are subject to the sole discretion of the Board and will depend upon, among other things, the Company’s results of operations, cash requirements, financial condition, contractual restrictions, excess debt capacity, and other factors the Board may deem relevant in its sole discretion.
Fiscal Year 2025 Financial Guidance and Store Growth Outlook
The Company is raising its financial expectations for the year, primarily to reflect its outperformance in the third quarter, as well as its improved outlook for the remainder of the year, while also taking into consideration the potential for uncertainty related to consumer behavior.
The Company now expects the following for the fiscal year ending January 30, 2026 (“fiscal year 2025”):
The Company now expects capital expenditures, including those related to investments in the Company’s strategic initiatives, to be toward the lower end of the range of $1.3 billion to $1.4 billion.
The Company’s financial guidance continues to assume no share repurchases in fiscal year 2025.
The Company is also reiterating its plans to execute approximately 4,885 real estate projects in fiscal year 2025, including opening approximately 575 new stores in the U.S. and up to 15 new stores in Mexico, remodeling approximately 2,000 stores through Project Renovate, remodeling approximately 2,250 stores through Project Elevate, and relocating approximately 45 stores.
Fiscal Year 2026 Store Growth Outlook
For the fiscal year ending January 29, 2027 (“fiscal year 2026”), the Company plans to execute approximately 4,730 real estate projects, including opening approximately 450 new stores in the U.S. (as well as approximately 10 new stores in Mexico), fully remodeling approximately 2,000 stores through Project Renovate, remodeling approximately 2,250 stores through Project Elevate, and relocating approximately 20 stores.
Conference Call Information
The Company will hold a conference call on December 4, 2025 at 8:00 a.m. CT/9:00 a.m. ET, hosted by Todd Vasos, chief executive officer, and Donny Lau, chief financial officer. To participate via telephone, please call (877) 407-0890 at least 10 minutes before the conference call is scheduled to begin. The conference ID is 13756753. There will also be a live webcast of the call available at https://investor.dollargeneral.com under “News & Events, Events & Presentations.” A replay of the conference call will be available through January 4, 2026, and will be accessible via webcast replay or by calling (877) 660-6853. The conference ID for the telephonic replay is 13756753.
Forward-Looking Statements
This press release contains forward-looking information within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act. Forward-looking statements include those regarding the Company’s outlook, strategy, initiatives, plans, intentions or beliefs, including, but not limited to, statements made within the quotation of Mr. Vasos, and in the sections entitled “Dividend,” “Fiscal Year 2025 Financial Guidance and Store Growth Outlook,” and “Fiscal Year 2026 Store Growth Outlook.”
A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as “accelerate,” “ahead,” “aim,” “anticipate,” “assume,” “believe,” “beyond,” “can,” “committed,” “confident,” “continue,” “could,” “drive,” “estimate,” “expect,” “focus on,” “forecast,” “future,” “goal,” “guidance,” “intend,” “investments,” “likely,” “long-term,” “look to,” “may,” “model,” “moving toward,” “near-term,” “ongoing,” “opportunity,” “outcome,” “outlook,” “plan,” “position,” “potential,” “predict,” “project,” “prospects,” “seek,” “should,” “subject to,” “target,” “uncertainty,” “well-positioned,” “will,” “would,” or “years ahead,” and similar expressions that concern the Company’s outlook, long-term financial framework, strategies, plans, initiatives, intentions or beliefs about future occurrences or results. These matters involve risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those which the Company expected. Many of these statements are derived from the Company’s operating budgets and forecasts as of the date of this release, which are based on many detailed assumptions and estimates that the Company believes are reasonable. However, it is very difficult to predict the effect of known factors on future results, and the Company cannot anticipate all factors that could affect future results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors. Important factors that could cause actual results to differ materially from the expectations expressed in or implied by such forward-looking statements include, but are not limited to:
All forward-looking statements are qualified in their entirety by these and other cautionary statements that the Company makes from time to time in its SEC filings and public communications. The Company cannot assure the reader that it will realize the results or developments the Company anticipates or, even if substantially realized, that they will result in the consequences or affect the Company or its operations in the way the Company expects. Forward-looking statements speak only as of the date made. The Company undertakes no obligation, and specifically disclaims any duty, to update or revise any forward-looking statements as a result of new information, future events or circumstances, or otherwise, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.
Investors should also be aware that while the Company does, from time to time, communicate with securities analysts and others, it is against the Company’s policy to disclose to them any material, nonpublic information or other confidential commercial information. Accordingly, shareholders should not assume that the Company agrees with any statement or report issued by any securities analyst regardless of the content of the statement or report. Furthermore, the Company has a policy against confirming projections, forecasts or opinions issued by others. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the Company’s responsibility.
About Dollar General Corporation
Dollar General Corporation (NYSE: DG) is proud to serve as America’s neighborhood general store. Founded in 1939, Dollar General lives its mission of Serving Others every day by providing access to affordable products and services for its customers, career opportunities for its employees, and literacy and education support for its hometown communities. As of October 31, 2025, the Company’s 20,901 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico provide everyday essentials including food, health and wellness products, cleaning and laundry supplies, self-care and beauty items, and seasonal décor from our high-quality private brands alongside many of the world’s most trusted brands such as Coca Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars, Nestlé, Procter & Gamble and Unilever.
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