What is the revenue and EPS growth rate for Dollar General year over year?

What guidance did Dollar General's management provide for the next earnings period?

What were the key takeaways from Dollar General's earnings call?

What does Dollar General do and what are its main business segments?

What is Dollar General's gross profit margin?

What is the market's earnings forecast for Dollar General next quarter?

What factors drove the changes in Dollar General's revenue and profit?

Did Dollar General beat or miss consensus estimates last quarter?

- **Revenue Beat**: Q3 sales $10.6B (+4.6% YoY), driven by 2.5% same-store sales growth and 7.6% growth in $1 SKUs.
- **Margin Expansion**: Gross margin +107 bps to 29.9%, with 120+ bps potential from shrink and digital media. EPS $1.28 (+43.8%) exceeded expectations.
- **Digital Growth**: 17,000+ stores with same-day delivery, 75% orders under 1 hour. Digital sales show 70%+ incremental customers and larger baskets.
- **Real Estate Momentum**: 450 new U.S. stores in 2026, 2,250 Project Elevate remodels, and 10 Mexico openings. 17% ROIC on new stores.
- **Non-Consumable Success**: 3rd straight quarter of non-consumable comp growth (4% in seasonal/home), with 20% of holiday sets priced at $1.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 net sales of $10.6 billion (+4.6% YoY), driven by 2.5% same-store sales growth. Market share gains in both consumable and non-consumable categories.
- **Customer Expansion**: Disproportionate growth in higher-income households, with total customer count increasing. Average basket size remained flat, reflecting core customer trade-off between frequency and spending.
- **Digital Momentum**: 17,000+ stores offering same-day delivery via DoorDash and Uber Eats, with 75% of orders delivered in under 1 hour. Digital sales show larger basket sizes and strong repeat rates.
- **Real Estate Expansion**: 196 new U.S. stores opened in Q3, with 2025 plans for 450 new stores, 2,000 remodels, and 2,250 Project Elevate stores. Mexico expansion to 15 stores by end of Q3.
- **Non-Consumable Growth**: 3rd consecutive quarter of non-consumable comp growth (4% in seasonal and home categories), driven by treasure hunt experience and value pricing ($1 SKUs in 20% of holiday sets).

**【CFO Financial Commentary】**
- **Gross Margin Expansion**: 107 bps YoY increase to 29.9%, driven by lower shrink (68 bps benefit) and inventory markups. Projected 82 bps operating margin improvement to 4.0%.
- **Cost Control**: SG&A as % of sales up 25 bps due to incentive comp, but operating expenses down 5% YoY. Q3 EPS of $1.28 (+43.8%) exceeded expectations.
- **Balance Sheet Strength**: $2.8B cash flow from operations (28% YoY growth). $600M senior note redemption in Q3, with another $550M redemption planned for Q4.
- **2025 Outlook**: Updated guidance for FY25: net sales 4.7-4.9%, EPS $6.30-$6.50. Capital spending to $1.3B-$1.4B, with focus on remodels and digital infrastructure.

**【Q&A Highlights】**
- **Gross Margin Sustainability**: Shrink improvements (120+ bps potential) and digital media network growth ($1B+ contribution by 2026) to drive margin expansion. Damage recovery initiatives expected to add 20-30 bps.
- **Real Estate Strategy**: 11,000+ U.S. store opportunities, with 17% ROIC on new stores. Project Elevate remodels delivering 3% comp lift, Project Renovate at 6%.
- **Digital Economics**: Media network revenue up double digits, with 70%+ incremental customers. Delivery orders >1 hour faster than in-store transactions.
- **Competitive Position**: Rural America dominance (80% stores in <20k pop towns) and digital delivery in rural areas (1-hour delivery) create defensible moat against Amazon/Walmart+.

Dollar General Corporation (DG) Q3 2026 Earnings Call Transcript

- **Revenue Growth**: Q2 net sales up 5.1% to $10.7B, with 2.8% same-store sales driven by balanced traffic and basket growth.
- **Margin Expansion**: Gross margin +137 bps to 31.3%, operating profit up 8.3% to $595M. FY25 EPS guidance raised to $5.80-$6.30.
- **Digital Success**: DoorDash sales +60% YoY, Uber Eats expansion to 14,000 stores. 75%+ deliveries completed in <1 hour.
- **Nonconsumables Growth**: All 3 key categories comped >2.5%, home category achieved largest quarterly growth in 4+ years.
- **Tax Impact**: Core customers expected to benefit from tax law changes, offsetting potential SNAP cuts.

**【CEO Summary Section】**
- Q2 net sales grew 5.1% to $10.7 billion, driven by new stores and mature store performance. Same-store sales increased 2.8%, with balanced growth in traffic (+1.5%) and basket size (+1.2%).
- The $1 Value Valley merchandising set delivered same-store sales growth over twice the company rate, highlighting core customer value proposition.
- Nonconsumable categories saw broad-based growth, with each of the 3 key categories (seasonal, home, apparel) comping up over 2.5%.
- Tariffs were effectively mitigated, with 80%+ of cost impacts offset through sourcing and low import exposure.

**【CFO Financial Commentary】**
- Gross profit margin improved 137 bps to 31.3%, driven by shrink reduction (108 bps) and inventory markups. Operating profit rose 8.3% to $595M, with EPS of $1.86 exceeding internal expectations.
- Updated FY25 guidance: Net sales 4.3-4.8%, same-store sales 2.1-2.6%, EPS $5.80-$6.30. Incentive comp expense expected to be a $200M headwind.
- Cash flow from operations up 9.8% YoY to $1.8B, supporting dividend payments and debt reduction.

**【CEO Key Initiatives Update】**
- **Real Estate Growth**: 204 new stores opened in Q2 (85% rural), with 13 Mexico locations. Project Renovate and Elevate remodels completed 1,321 stores, targeting 6-8% and 3-5% first-year comps.
- **Digital Expansion**: DoorDash sales up 60% YoY, Uber Eats partnership expanded to 14,000 stores by Q3. DG Media Network driving retail media growth.
- **Nonconsumables Strategy**: Home category achieved largest quarterly comp in 4+ years. pOpshelf banner delivered strong results, with learnings applied to Dollar General stores.

**【Q&A Highlights】**
- **Shrink Impact**: Shrink reduction on track to contribute >80 bps to long-term 6-7% operating margin target. Q4 will lap tougher comparisons but still expect improvement.
- **Digital Delivery**: Uber Eats expansion to 14,000 stores by Q3, with 75%+ orders delivered in <1 hour. DG white-label delivery program accelerating adoption.
- **SNAP Cuts**: Minimal impact expected as core customers benefit from tax law changes (e.g., no tax on tips, child tax credits).

Dollar General Corporation (DG) Q2 2025 Earnings Conference Call Transcript

- **Q1 Outperformance**: 5.3% net sales growth, 2.4% same-store sales, and $1.78 EPS beat expectations, driven by new stores, remodels, and digital expansion.
- **Trade-In Growth**: Highest trade-in activity in 4 years, attracting higher-income customers and contributing to non-consumable category growth.
- **Tariff Resilience**: Reduced China exposure and cost mitigation strategies limit tariff impact, with guidance reflecting cautious optimism amid macro uncertainty.
- **Digital Leap**: DoorDash delivery sales up >50% YoY, expanding to >16,000 stores, while DG Media Network grows 25% YoY for incremental revenue streams.
- **Margin Improvement**: 78 bps gross margin expansion and 61 bps shrink improvement highlight operational excellence, with further gains expected from remodels and inventory management.

**【CEO Summary Section】**
- **Q1 Financial Highlights**: Net sales rose 5.3% to $10.4 billion, driven by 156 new store openings and 2.4% same-store sales growth. Non-consumable categories (seasonal, home, apparel) saw strong comp sales, with seasonal and home categories exceeding 3%.
- **Customer Insights**: 60% of core customers report needing to sacrifice necessities, yet new customers are making more trips and spending more. Trade-in activity reached its highest level in 4 years, attracting higher-income shoppers.
- **Tariff Mitigation**: Direct imports account for <7% of purchases, with China exposure reduced to <70% of direct and <40% of indirect imports. Strategies include negotiating cost concessions and diversifying suppliers to minimize price increases.

**【CFO Financial Commentary】**
- **Profitability**: Gross margin improved 78 bps to 31% due to lower shrink and markups. Operating profit rose 5.5% to $576M, with EPS up 7.9% to $1.78, exceeding internal expectations.
- **Balance Sheet Strength**: Merchandise inventory decreased 5% YoY to $6.6B. Cash flow from operations increased 27.6% to $847M, enabling $500M debt repayment and $130M dividend payout.
- **Guidance Update**: 2025 outlook revised to 3.7-4.7% net sales growth, 1.5-2.5% same-store sales growth, and EPS of $5.20-$5.80, reflecting Q1 outperformance and tariff uncertainty.

**【Growth Initiatives】**
- **Real Estate Expansion**: 156 new stores opened in Q1, targeting 575 U.S. openings. Project Renovate remodels (668) and Project Elevate (659) aim for 6-8% and 3-5% first-year comp lifts. Digital delivery via DoorDash grew >50% YoY, now serving >16,000 stores.
- **Non-Consumable Strategy**: Brand partnerships and treasure hunt experience drove Q1 non-consumable comp growth. pOpshelf stores exceeded expectations, with 20%+ market share gains in toys, party, and beauty.

**【Q&A Key Takeaways】**
- **Sales Momentum**: Q2 traffic turned positive, with confidence in sustained comp growth due to improved store execution, trade-in customer retention, and remodel projects.
- **Tariff Impact**: Mitigation plans include cost concessions and diversification, but potential price increases could affect consumer spending. Guidance assumes 23.5% tax rate and no share buybacks.
- **Digital Expansion**: DoorDash delivery now includes SNAP/EBT transactions, expanding access to low-income customers. DG Media Network grew 25% YoY, positioning for long-term revenue growth.
- **Shrink Progress**: Q1 shrink improvement of 61 bps is expected to continue, with damage control efforts targeting 40 bps mid- to long-term margin benefits.

Dollar General Corporation (DG) Q1 2025 Earnings Call Transcript

- **Q4 Growth**: $10.3B net sales (+4.5%), 1.2% same-store sales driven by higher transaction amounts.
- **Store Optimization**: 96 underperforming stores closed, 6 pOpshelf conversions, and 45 pOpshelf closures.
- **2025 Outlook**: 3.4-4.4% sales growth, $5.10-$5.80 EPS, and 6-7% operating margin target by 2028.
- **Digital Expansion**: 575 new stores, 2,000 remodels, and 400+ same-day delivery pilots in 2025.
- **Non-Consumables Push**: Target 20% of sales by 2027 (18% now), with 4 growth pillars.

**【CEO Summary Section】**
- Q4 net sales grew 4.5% to $10.3 billion, driven by 1.2% same-store sales growth and 2.3% increase in average transaction amount.
- 96 underperforming Dollar General stores and 45 pOpshelf stores were closed, with 6 pOpshelf locations converted to Dollar General.
- Consumer financial stress remains elevated, with 82% of sales in lower-margin consumables, but pOpshelf stores saw double-digit sales lifts post-category reorganization.

**【CFO Financial Commentary】**
- Q4 GAAP EPS was $0.87, down 52.5% due to $232M portfolio optimization charges.
- 2025 guidance: 3.4-4.4% net sales growth, 1.2-2.2% same-store sales, and $5.10-$5.80 EPS.
- Long-term framework targets 3.5-4% annual sales growth, 6-7% operating margin by 2028, and 10%+ EPS growth from 2026.

**【Key Q&A Insights】**
- 2025 SG&A deleverage expected due to wage inflation (3.5-4%), normalized incentives ($120M headwind), and depreciation.
- 2025 real estate projects include 575 new stores, 2,000 remodels, and 45 Mexico openings.
- Digital initiatives: 16,000+ DoorDash delivery partnerships, 400+ same-day delivery pilots, and 15M+ SKUs removed from inventory.
- Non-consumable sales mix target: 20% by 2027 (currently 18%), with 4 pillars of growth (brands, treasure hunt, space reallocation, newness).

Dollar General (DG)-13 Mar 25-2025 Q4 Earnings call transcript

Dollar General (DG)-5 Dec 24-2025 Q3 Earnings call transcript

- **Q2 Results Mixed**: 4.2% sales growth but 0.5% comp sales, driven by consumables. Core low-income customers face financial stress, impacting discretionary spending.
- **Strategic Response**: Increased promotions and markdowns to drive traffic, while reducing inventory (7% total, 11% per store) and optimizing supply chain.
- **Financial Challenges**: 20.6% drop in operating profit, 20.2% EPS decline. Updated guidance reflects softer sales and elevated promotional activity.
- **Long-Term Outlook**: Confident in "back-to-basics" strategy to improve margins through shrink reduction, new store expansion, and operational efficiency. Shrink expected to turn positive by Q4 2024.

**【CEO Summary Section】**
- **Q2 Financial Overview**: Net sales increased 4.2% to $10.2 billion, but same-store sales grew only 0.5%, below expectations. Growth in consumables offset declines in seasonal and apparel categories.
- **Core Customer Challenges**: 60% of sales come from low-income households (income < $35,000), which report financial strain due to inflation, reduced employment, and higher borrowing costs. 25% of surveyed customers anticipate missing bill payments in the next 6 months.
- **Strategic Actions**: Increased markdowns and promotions to support customers, while continuing "back-to-basics" initiatives (e.g., supply chain optimization, inventory reduction, and in-store experience improvements). 1,000 SKUs reduced year-to-date, with plans to simplify store displays by over 50% by year-end.
- **Operational Progress**: Improved in-stock levels, reduced turnover across all retail roles, and on-time delivery rates exceeding expectations. New distribution centers in Arkansas and Colorado expected to reduce costs.

**【CFO Financial Commentary】**
- **Gross Margin Pressure**: 112 basis point decline due to increased markdowns, inventory damage, and sales mix shifts. Shrink remained a headwind (21 basis points) but progress is visible.
- **SG&A Expenses**: 57 basis point increase driven by labor, occupancy, and utility costs. EPS decreased 20.2% to $1.70, with updated full-year guidance of $5.50-$6.20.
- **Inventory Management**: Total inventory down 7% (11% per store), non-consumables down 13% (17% per store). Cash flow from operations up 127% to $1.7 billion year-to-date.
- **Capital Allocation**: $1.3-$1.4 billion in capex for 2,435 real estate projects, including 730 new stores. Dividend payout of $130 million in Q2.

**【Q&A Key Highlights】**
- **Promotional Strategy**: Increased markdowns in consumables (e.g., food, cleaning) to drive traffic, with promotional levels similar to last year's back half. Long-term focus on everyday low prices and operational efficiency.
- **Shrink and Margin Recovery**: Shrink expected to turn into a tailwind by Q4 2024, with progress in inventory reduction and self-checkout conversions. Margins to improve through fixed cost leverage and supply chain efficiency.
- **New Store Growth**: 730 new stores planned for 2024, with strong returns and minimal cannibalization. Focus on optimizing existing stores before scaling expansion.
- **Competitive Position**: Confident in value proposition against competitors, with 75% of U.S. population within 5 miles of a store. Long-term focus on disciplined expense management and free cash flow generation.

Dollar General (DG)-29 Aug 24-2025 Q2 Earnings call transcript

Dollar General (DG)-30 May 24-2025 Q1 Earnings call transcript

Dollar General (DG)-14 Mar 24-2024 Q4 Earnings call transcript

- **Revenue Resilience**: Q3 net sales up 2.4% to $9.7 billion, with customer traffic turning positive in Q3 and early November recovery in same-store sales.
- **Store Investment Payoff**: $150M labor reinvestment driving front-end service and inventory accuracy, with SKU rationalization targeting 15%+ nonconsumable inventory reduction.
- **Supply Chain Efficiency**: OTIF focus reducing temporary warehouse reliance, while 2024 real estate plans emphasize rural growth and larger formats.
- **Financial Challenges**: 2023 EPS guidance reflects 45.9% decline, driven by higher interest costs and shrink, with 2024 margin recovery dependent on SKU simplification and inventory optimization.
- **Long-Term Vision**: CEO confident in returning to historical operating margins through disciplined execution of basics, with 2024 new store returns expected at 18% despite higher construction costs.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 net sales increased 2.4% to $9.7 billion, with same-store sales declining 1.3% due to lower average transaction amount. Customer traffic turned positive in Q3 and improved sequentially, with early signs of recovery in November.
- **Store Investments**: $150 million invested in store labor to enhance customer service and inventory management, redeploying resources from smart teams to front-end operations and perpetual inventory processes.
- **Supply Chain Focus**: Emphasis on OTIF (on-time, in-full) deliveries to simplify store operations, reduce temporary warehouse usage, and optimize distribution center productivity.
- **SKU Rationalization**: Targeting less productive SKUs to improve inventory turns, reduce shrink, and simplify store operations, with a focus on consumable categories.
- **Real Estate Expansion**: 2024 plans include 2,385 projects (800 new stores, 1,500 remodels), prioritizing rural locations and larger formats with expanded product offerings.

**【CFO Financial Commentary】**
- **Gross Profit**: 29% of sales, down 147 bps YoY due to increased shrink, markdowns, and lower markups, partially offset by lower LIFO and transportation costs.
- **SG&A Expenses**: 24.5% of sales, up 183 bps YoY driven by retail labor investments, rent, and other costs.
- **Operating Profit**: $433.5 million, down 41.1% YoY, with operating margin at 4.5% (down 330 bps).
- **EPS**: $1.26, down 45.9% YoY, reflecting higher interest expenses and tax benefits.
- **Inventory Management**: Total merchandise inventory $7.4 billion (+3% YoY), with nonconsumable inventory down 15% YoY. Year-to-date markdowns reduced by 58%.
- **2023 Guidance**: Net sales 1.5%-2.5% growth, same-store sales -1% to flat, EPS $7.10-$7.60 (-29% to -34%). Capital spending $1.6-$1.7 billion.

**【Q&A Highlights】**
- **Margins and Investment**: CEO expects long-term return to historical operating margins through SKU rationalization, inventory optimization, and supply chain efficiency. CFO notes near-term headwinds from elevated shrink, tax rates, and lapping prior-year cost savings.
- **Inventory Progress**: Nonconsumable inventory down 19% per store YoY, with focus on selling through core everyday goods rather than discretionary items.
- **New Store Returns**: 2024 new store returns expected at 18%, down from historical 20%+ due to higher construction costs. Emphasis on rural expansion and larger formats with fresh produce and health/beauty products.
- **Deflation Risks**: CEO sees limited deflationary pressure in consumables, with opportunities to reduce costs in nonconsumables through import and transportation efficiencies.
- **Out-of-Stock Issues**: In-store inventory accuracy improving, with Q3 in-stock rates showing meaningful improvement through redeployment of labor to perpetual inventory management.


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