Dollar General Boosts Profit Forecast, Drives Share Gains
Shares of Dollar General (NYSE: DG) rose on August 27 after the company raised its full-year profit forecast. The low-price retailer reported a 5.2% year-over-year increase in net sales to $11.3 billion for its fiscal second quarter, driven by new store openings and higher same-store sales of 3.5%. Dollar General opened 126 stores during the period and remodeled over 1,300 locations. CEO Todd Vasos attributed strong performance to increased consumer demand for bargains amid rising gas prices, with Dollar General's extensive U.S. store network well-positioned to benefit from this trend. The company also raised its full-year same-store sales guidance to a range of 2.5% to 2.9%, and expects earnings per share between $7.80 and $8.00 for the year. Dollar General plans to open an additional 460 stores in fiscal 2026, including locations in Mexico, while also remodeling up to 4,250 existing sites. The company announced a stock buyback of up to $700 million in the second half of the year.
Topics: retail same-store-sales store-expansion