Dollar General Raises Fiscal 2025 EPS Target to $5.80-$6.30, Boosts Annual Sales Guidance

Dollar General has raised its annual targets for sales and profit, citing strong demand for affordable essentials. The company's Q2 earnings exceeded estimates, with a net sales increase and EPS of $1.86, up from FactSet's estimate of $1.56. Dollar General has also boosted its FY25 outlook, with an EPS range of $5.80-$6.30, higher than FactSet's estimate of $5.80.

Dollar General Corporation (NYSE: DG) has significantly raised its annual targets for sales and profit, citing robust demand for affordable essentials. The company's Q2 earnings exceeded estimates, with a net sales increase and EPS of $1.86, up from FactSet's estimate of $1.56. Dollar General has also boosted its FY25 outlook, with an EPS range of $5.80-$6.30, higher than FactSet's estimate of $5.80.

In its fiscal year 2025 second quarter (13 weeks) ended August 1, 2025, Dollar General reported net sales of $10.7 billion, a 5.1% increase compared to $10.2 billion in the same period last year. Same-store sales grew by 2.8%, driven by a 1.5% increase in customer traffic and a 1.2% increase in average transaction amount. Operating profit increased 8.3% to $595.4 million, while diluted EPS rose 9.4% to $1.86 [1].

Todd Vasos, Dollar General's chief executive officer, commented, "We are pleased with our strong second-quarter results, including earnings growth that significantly exceeded our expectations." He attributed the performance to improved execution and progress in key initiatives, which have resonated with both existing and new customers.

Looking ahead, Dollar General expects net sales growth of approximately 4.3% to 4.8% for the fiscal year ending January 30, 2026, compared to its previous expectation of approximately 3.7% to 4.7%. The company also expects same-store sales growth of approximately 2.1% to 2.6%, up from its previous expectation of approximately 1.5% to 2.5% [1].

Dollar General's financial guidance continues to assume an effective tax rate of approximately 23.5% and capital expenditures in the range of $1.3 billion to $1.4 billion. The company is also planning to execute approximately 4,885 real estate projects in fiscal year 2025, including opening approximately 575 new stores in the U.S. and up to 15 new stores in Mexico, remodeling approximately 2,000 stores through Project Renovate, and remodeling approximately 2,250 stores through Project Elevate [1].

References:
[1] https://www.stocktitan.net/news/DG/dollar-general-corporation-reports-second-quarter-2025-eatfoqzot1d4.html