Dollar General (DG) Q4 2026 earnings summary

Executive summary

• Net sales grew 5.9% year-over-year to $10.9 billion in Q4 and 5.2% to $42.7 billion for the year, driven by same-store sales and new store contributions.

• Same-store sales increased 4.3% in Q4 and 3.0% for the year, with broad-based category growth and non-consumables outpacing consumables.

• Operating profit surged 106% in Q4 to $606 million and 28.6% for the year to $2.2 billion, reflecting margin expansion and lower impairment charges.

• Value offerings, especially $1 price point items, saw strong performance, with Value Valley comp sales up 17.6%.

• Digital and delivery initiatives contributed meaningfully to sales, with delivery accounting for 80 basis points of Q4 comp growth.

Financial highlights

• Q4 gross margin expanded 105 basis points to 30.4%, and FY gross margin reached 30.7%, driven by reduced shrink and higher markups.

• Operating margin rose to 5.6% in Q4 and 5.2% for the year; net margin improved to 3.9% in Q4 and 3.5% for the year.

• EPS increased 122% in Q4 to $0.93 and 121.8% to $1.93 diluted; annual EPS up 34.1% to $6.85.

• Merchandise inventories declined 5.7% year-over-year to $6.3 billion, with strong cash flow from operations up 21.3% to $3.6 billion.

• Net interest expense fell 20.6% in Q4 and 15.9% for the year.

Outlook and guidance

• 2026 net sales growth expected at 3.7%-4.2%, same-store sales growth at 2.2%-2.7%, and EPS of $7.10-$7.35, assuming a 25% tax rate and a $0.13 EPS headwind from the expiration of the Work Opportunity Tax Credit.

• Capital spending projected at $1.4-$1.5 billion; plans for 450 new US stores, 10 in Mexico, and over 4,000 remodels/relocations.

• No share repurchases planned for 2026; program expected to resume in 2027.

• Gross margin expansion expected to continue, but at a slower pace than 2025; modest SG&A deleverage anticipated.