GOODLETTSVILLE, Tenn. – Dollar General Corp. today reported better-than-expected sales and profits in the quarter ended July 31, as shoppers seeking convenience and value drove increases in store traffic and basket sizes.
“Our results reflect continued momentum across the business, including our fifth consecutive quarter of customer traffic growth and the sixth consecutive quarter of positive comparable sales growth across all four merchandising categories,” CEO Todd Vasos said. “This broad-based performance reflects the strength of our unique combination of value and convenience and the important role Dollar General plays in the communities we serve.”
Net sales increased 5.2% to $11.3 billion, the company said, and comparable-store sales increased 3.5%.
Diluted earnings per share increased 33.3% to $2.48; operating profit increased 29.2% to $762 million.
“These results, which exceeded our expectations even before considering the benefit from tariff refunds after related reinvestments, are a testament to the strong execution, strategic direction, and continued dedication of our team,” Vasos said.
DG opened 125 new stores in the United States and one new store in Mexico during the second quarter. It remodeled 665 stores through Project Renovate (standard store remodels) and 711 stores through Project Elevate (light-touch remodels to improve the customer experience at older stores).
Dollar General raised its full-year financial guidance to reflect the first-half performance. Management now expects net sales to increase in the range of 4% to 4.3%, compared to its previous projection of growth in the range of 3.7% and 4.2%.
It now expects comps to increase in the range of 2.5% to 2.9%, compared to the earlier range of 2.2% to 2.7%.
Diluted per-share earnings are now expected to come in at between $7.80 and $8, compared to the earlier forecast in the range $7.20 to $7.45.
“As we move through the back half of the year, we remain confident in our strategy, our long-term financial framework and our ability to continue driving value for our customers, associates and shareholders,” Vasos said.
