Dollar General raises outlook after fiscal second-quarter beat

Dollar General Corp. (NYSE: DG ) stock traded higher Thursday after the company reported fiscal second-quarter 2026 results and raised its full-year outlook.

The discount retailer reported net sales of $11.29 billion, up 5.2% year over year.

Revenue beat the consensus estimate of $11.197 billion.

Earnings rose 33% to $2.48 per share, beating the Street estimate of $2.01.

The result included a roughly 25-cent benefit from tariff refunds after related reinvestments.

Dollar General also plans to resume share repurchases in the third quarter.

The company expects to buy back up to $700 million in shares during the second half of the year, citing strong cash flow and liquidity.

During the earnings call, Dollar General said stubborn inflation and gas prices of $4 or more in some states continue to strain its core shopper.

The company said customers are "watching every penny" and purchasing less per trip because they remain uncertain about the weeks ahead.

Customer Traffic Continues To Grow Same-store sales rose 3.5% from the year-ago quarter.

Customer traffic increased 2%, while the average transaction amount grew 1.5%.

The period marked Dollar General’s fifth consecutive quarter of customer traffic growth.

It also marked the sixth straight quarter of positive comparable sales growth across all four merchandising categories.

Gross margin expanded 127 basis points to 32.6%.

Tariff refunds, a lower last-in, first-out provision and reduced distribution costs drove the increase.

Higher markdowns and transportation expenses partly offset those gains.

Read Also: Dollar General's Q1 Beat Driven By Cost Control As CEO Exit Looms Dollar General Expands $1 Offering During the company’s earnings call, CEO Todd Vasos said core customers remain financially constrained. "Most notably, higher and more volatile fuel prices have forced customers to further prioritize purchases with a focus on value and affordability," Vasos said.

Dollar General said its Value Valley assortment now includes more than 600 rotating items priced at $1 each.

During the quarter, the retailer expanded its $1 off-shelf displays to more than 9,000 stores.

Dollar General Raises Fiscal 2026 Outlook Dollar General raised its fiscal 2026 earnings guidance to between $7.80 and $8 per share, up from its previous range of $7.20 to $7.45.

The consensus estimate is $7.41 per share.

The company also increased its sales forecast to between $44.43 billion and $44.56 billion, compared with its previous range of $44.31 billion to $44.52 billion.

Wall Street expects sales of $44.43 billion.

Dollar General now expects same-store sales growth of 2.5% to 2.9%, up from its previous forecast of 2.2% to 2.7%.

DG Stock Price Action: Dollar General shares rose 5.99% to $130.14 at the time of publication Thursday, according to Pro.

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