Dollar General (DG) Q4 2025 earnings summary

Executive summary

• Q4 net sales rose 4.5% to $10.3B, with full-year sales up 5% to $40.6B, driven by new stores and same-store sales growth, partially offset by store closures.

• Same-store sales increased 1.2% in Q4 and 1.4% for the year, led by consumables, while other categories declined.

• Operating profit fell 49% in Q4 and 29.9% for the year, impacted by $232M in charges from store closures and impairments.

• Net income for Q4 dropped 52.4% to $191.2M; full-year net income down 32.3% to $1.1B. Diluted EPS for Q4 was $0.87 (down 52.5%), and $5.11 for the year (down 32.3%).

• Cash flow from operations increased 25% to $3B for the year.

Financial highlights

• Gross profit margin for Q4 was 29.4% (down 8 bps YoY), pressured by higher markdowns, damages, and distribution costs, partially offset by lower shrink.

• SG&A rose to 26.5% of sales in Q4 (up 294 bps YoY), mainly from impairment charges and higher labor, incentive compensation, and maintenance costs.

• Operating profit fell 49% to $294M in Q4, with a 302 bps decrease in margin, largely due to portfolio review charges.

• Inventory ended at $6.7B, down 4% year-over-year and 6.9% per store.

• Cash and cash equivalents at year-end: $932.6M, up from $537.3M YoY.

Outlook and guidance

• 2025 guidance: net sales growth of 3.4%-4.4%, same-store sales growth of 1.2%-2.2%, and EPS of $5.10-$5.80.

• Capital spending expected at $1.3-$1.4B, with 4,885 real estate projects planned, including 575 new U.S. stores, up to 15 in Mexico, 2,000 remodels, and 2,250 Project Elevate remodels.

• No share repurchases planned for 2025; quarterly dividend of $0.59 per share approved.

• Long-term framework targets 3.5%-4% annual net sales growth, 2%-3% same-store sales growth, and operating margin expansion to 6%-7% by 2028.

• Double-digit adjusted EPS growth expected beginning in 2026.