Dollar General Corporation reported a net sales increase of 5.3% for the first quarter of fiscal 2025, reaching $10.44 billion compared to $9.91 billion in the same period last year. The growth was driven by new store openings and a same-store sales increase of 2.4%, which was attributed to a 2.7% rise in average transaction amounts, despite a slight decline in customer traffic. Gross profit also saw an increase of 8.0%, resulting in a gross profit margin of 31.0%, up from 30.2% in the previous year, primarily due to lower inventory shrink and higher markups.
In terms of profitability, net income rose to $391.9 million, a 7.9% increase from $363.3 million in the prior year. This translated to diluted earnings per share of $1.78, up from $1.65. The company’s selling, general, and administrative expenses increased by 8.5%, reflecting higher retail labor and incentive compensation costs. Interest expenses decreased to $64.6 million, down from $72.4 million, due to lower average borrowings and higher cash balances.
Operationally, Dollar General opened 156 new stores and remodeled 668 stores during the quarter, while also closing 168 locations as part of its ongoing store optimization strategy. The company operates a total of 20,582 stores across 48 U.S. states and Mexico. The inventory balance as of May 2, 2025, was approximately $6.59 billion, a decrease from $6.71 billion at the end of the previous fiscal year. The company reported an inventory turnover rate of 4.2, up from 3.8, indicating improved efficiency in managing inventory.
Looking ahead, Dollar General plans to open approximately 575 new stores in fiscal 2025, alongside significant remodeling efforts, including 2,000 full remodels and 2,250 partial remodels through its Project Renovate and Project Elevate initiatives. The company is also focusing on enhancing its digital capabilities and expanding its DG Media Network. Despite facing challenges such as inflation and labor costs, Dollar General remains committed to its long-term growth strategies and maintaining its position as a low-cost operator in the retail sector.
About DOLLAR GENERAL CORP
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