Dollar General Corporation reported its financial results for the first quarter of fiscal 2026, ending May 1, 2026, showing a net sales increase of 3.4% to $10.79 billion, compared to $10.44 billion in the same period last year. The company's net income rose by 13.3% to $444.1 million, up from $391.9 million in the prior year. Earnings per share also increased, with diluted earnings per share reaching $2.00, a 12.4% rise from $1.78 in the previous year. The gross profit margin improved to 31.6%, reflecting a 65 basis point increase, driven by higher inventory markups and reduced shrinkage and damages.
In terms of operational performance, Dollar General experienced a same-store sales increase of 2.0%, attributed to a 1.4% rise in customer traffic and a 0.5% increase in average transaction amounts. The sales growth was supported by strong performance in consumables, seasonal, apparel, and home products categories. The company operated 20,339 same-stores during the quarter, generating $10.50 billion in sales. Additionally, Dollar General opened 195 new stores, including five in Mexico, and remodeled 1,370 stores, demonstrating its commitment to expanding its footprint and enhancing customer experience.
The company’s total assets increased to $31.70 billion, up from $30.96 billion at the end of the previous fiscal year. Current assets rose to $8.47 billion, driven by higher cash and merchandise inventories. Dollar General's inventory levels increased by 5% compared to the previous year, reflecting its strategy to manage inventory effectively amid changing market conditions. The company also reported a decrease in interest expenses, which fell to $47.2 million, primarily due to lower average outstanding borrowings.
Looking ahead, Dollar General plans to continue its growth trajectory by opening approximately 450 new stores and remodeling around 2,000 stores in fiscal 2026. The company is also focused on enhancing its digital initiatives, including the Dollar General app and delivery services, to improve customer engagement and sales performance. Despite ongoing inflationary pressures and rising operational costs, Dollar General remains committed to maintaining its low-cost operating model while investing in strategic initiatives to drive long-term growth. The company anticipates that its efforts in inventory management, store remodels, and digital enhancements will contribute positively to its financial performance in the upcoming quarters.
About DOLLAR GENERAL CORP
Dollar General is the largest discount retailer in the U.S., operating over 20,600 small-box stores offering everyday low prices on a broad range of consumables, seasonal, home, and apparel products. Serving primarily low- and fixed-income households, it emphasizes convenience, value, and efficient supply chain management. The company focuses on profitable store growth, private brands, and cost-effective operations across diverse markets in the U.S. and Mexico.
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