Dollar General (DG) investor relations material

Executive summary

• Net sales for Q2 2026 increased 5.2% year-over-year to $11.3 billion, driven by a 3.5% same-store sales increase, new store openings, and balanced top-line growth, partially offset by store closures.

• Operating profit rose 29.2% to $769.2 million, with EPS up 33% to $2.48, exceeding expectations and including a $0.25 benefit from tariff refunds.

• Fifth consecutive quarter of customer traffic growth and sixth consecutive quarter of positive comparable sales across all categories, with non-consumables outpacing consumables.

• Market share gains accelerated in both consumable and non-consumable product sales, especially in rural communities.

• Strong execution, lower turnover, and improved inventory shrink contributed to results.

Financial highlights

• Gross profit margin rose 127 basis points to 32.6%, aided by tariff refunds, lower LIFO provision, and reduced distribution costs.

• Net income for Q2 2026 was $550.3 million, up 33.8% year-over-year.

• Merchandise inventories were $6.6 billion, flat year-over-year and down 2.7% per store.

• Cash flow from operations year-to-date reached $1.5 billion.

• For the first half of 2026, net sales rose 4.3% to $22.08 billion, with same-store sales up 2.7%.

Outlook and guidance

• Full-year 2026 guidance raised: net sales growth of 4%-4.3%, same-store sales growth of 2.5%-2.9%, and EPS of $7.80-$8.00, including $0.25 Q2 tariff refund benefit.

• Up to $700 million in share repurchases planned for the second half, with $1.4 billion remaining authorized.

• Capital expenditures projected at $1.4–$1.5 billion for 2026, funded by cash flow, cash balances, and available credit.

• Plans to open 450 new US stores and 10 in Mexico, remodel 4,250 stores, and relocate 20 stores in 2026.

• Modest SG&A deleverage anticipated as investments continue in key initiatives.