GOODLETTSVILLE, Tenn. — Dollar General Corp. reported robust results for the third quarter of fiscal 2025, marking continued progress under chief executive officer Todd Vasos’ leadership as the discount retailer pushes forward on its operational turnaround and growth plans.
For the 13 weeks ended October 31, net sales rose 4.6% to $10.6 billion, while same-store sales increased 2.5%, driven by higher customer traffic across all major categories. Operating profit jumped 31.5% to $425.9 million, and diluted earnings per share surged 43.8% to $1.28.
“I want to thank our team for their work serving our customers and communities, which led to another quarter of strong financial results,” Vasos said. “These results were highlighted by EPS growth of 44%, strong operating margin performance, and balanced sales growth, including market share gains across both consumable and non-consumable categories.”
Broad-Based Sales and Margin Gains
The 2.5% increase in same-store sales reflected a corresponding 2.5% rise in customer traffic, with the average transaction value remaining flat. All four key merchandise categories—consumables, seasonal, home products, and apparel—posted positive growth.
Gross margin expanded to 29.9% of net sales from 28.8% a year earlier, a 107-basis-point improvement driven primarily by higher inventory markups and lower shrink. These gains were partially offset by a higher LIFO provision.
Selling, general and administrative expenses rose modestly as a percentage of sales, to 25.9% from 25.7%, reflecting higher incentive compensation, repairs, and utilities.
Net income for the quarter climbed 43.8% to $282.7 million, aided by lower interest expense and stable tax rates.
Operational Efficiency and Inventory Discipline
Dollar General continued to strengthen its balance sheet and operational efficiency. Year-to-date operating cash flow rose 28.4% to $2.8 billion, while merchandise inventories declined 8.2% on an average per-store basis to $6.7 billion, reflecting improved inventory management and reduced stock levels.
Capital spending for the first nine months totaled $1 billion, focused on store improvements, distribution and transportation upgrades, and technology investments. The company opened 196 new stores during the quarter and remodeled more than 1,100 locations under its Project Elevate and Project Renovate initiatives.
Dividend and Shareholder Returns
The board of directors declared a quarterly cash dividend of $0.59 per share, payable January 20, 2026, to shareholders of record on January 6, 2026. Dollar General said it intends to maintain regular dividend payments, subject to board approval and financial conditions.
Upbeat 2025 Guidance
Citing stronger-than-expected third quarter results and improved momentum heading into the holiday season, Dollar General raised its full-year outlook. The company now expects:
- Net sales growth of 4.7% to 4.9%, up from prior guidance of 4.3% to 4.8%.
- Same-store sales growth of 2.5% to 2.7%, compared to 2.1% to 2.6% previously.
- Diluted EPS of $6.30 to $6.50, versus prior guidance of $5.80 to $6.30.
The forecast assumes an effective tax rate of roughly 23.5% and no share repurchases in fiscal 2025. Capital expenditures are expected toward the lower end of the previously announced $1.3 billion to $1.4 billion range.
Expanding Footprint and Long-Term Confidence
Dollar General reaffirmed its commitment to a sweeping real estate program encompassing nearly 4,900 projects in fiscal 2025, including approximately 575 new stores in the U.S. and up to 15 in Mexico, along with roughly 4,300 remodels and relocations.
For fiscal 2026, the company plans approximately 4,730 projects, including 450 new U.S. stores, up to 10 in Mexico, and continued execution of its Project Elevate and Project Renovate remodels.
“As America’s neighborhood general store in nearly 21,000 locations, we are focused on continuing to enhance our value and convenience proposition to serve both new and existing customers,” Vasos said. “Looking ahead, we are confident in our long-term financial framework and our ability to create sustainable long-term value for our customers, associates, and shareholders.”
With solid margin improvement, disciplined inventory management, and a sharpened real estate strategy, Dollar General appears to be regaining operational momentum after a challenging period—positioning the retailer for continued growth through 2026 and beyond.
