Dollar General Corporation reported fiscal third‑quarter 2025 results that surpassed analyst expectations, with net sales of $10.65 billion, a 4.6% year‑over‑year increase, and diluted earnings per share of $1.28, up 44.8% from $0.89 a year earlier.
The earnings beat was driven by disciplined cost management and a favorable mix of inventory. Operating profit rose 31.5% to $425.9 million, while the gross‑profit margin expanded to 29.9% from 28.8% a year ago. Higher inventory markups and a reduction in shrink contributed to the margin lift, and the company’s LIFO provision increased but only partially offset the gain.
Same‑store sales grew 2.5% year‑over‑year, supported by a 1.5% increase in customer traffic and a 1.2% lift in basket size. All core categories—consumables, seasonal, home products, and apparel—posted growth, reinforcing the company’s value‑driven positioning in a price‑sensitive market.
Management raised its full‑year 2025 earnings‑per‑share guidance to $6.30–$6.50, an upward revision from the prior $5.80–$6.30 range. The company also reiterated its 2026 real‑estate plan, targeting 575 new U.S. stores and up to 15 in Mexico, and emphasized continued remodel activity.
The company faces headwinds from broader economic uncertainty, tariff volatility, and potential changes to entitlement programs, but tailwinds such as sustained demand for value‑oriented products, lower shrink, and inventory‑markup gains are expected to support near‑term performance.
"I want to thank our team for their work serving our customers and communities, which led to another quarter of strong financial results," said CEO Todd Vasos. He added that the company’s focus on value and convenience positions it to gain market share across all segments.
Investors responded positively to the results, with the EPS beat and margin expansion being the primary catalysts for the favorable market reaction.
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