Q1 27 EPS

$2.00

BEAT +6.22%

Est. $1.88

Q1 27 Revenue

$10.79B

MISS 0.23%

Est. $10.81B

vs S&P Since Q1 27

-0.8%

TRAILING MARKET

DG -2.8% vs S&P -2.0%

Market Reaction

Did DG Beat Earnings? Q1 2027 Results

Dollar General delivered a stronger-than-expected first quarter in fiscal 2026, posting diluted EPS of $2.00 against a consensus estimate of $1.88, a 6.22% beat, as the discount retailer demonstrated resilience despite headwinds from severe winter we… Read more Dollar General delivered a stronger-than-expected first quarter in fiscal 2026, posting diluted EPS of $2.00 against a consensus estimate of $1.88, a 6.22% beat, as the discount retailer demonstrated resilience despite headwinds from severe winter weather and elevated fuel costs. Net sales rose 3.4% year-over-year to $10.79 billion, just shy of the $10.81 billion consensus by 0.23%, with same-store sales growth of 2.0% driven by a 1.4% lift in customer traffic. The most material driver of profitability was gross margin expansion of 65 basis points to 31.6%, fueled by higher inventory markups and reduced shrink, which helped push operating profit up 10.8% to $638.52 million. Ahead of the report, analysts had flagged Dollar General's value-oriented positioning as a potential tailwind given continued consumer demand for affordability, a thesis the results largely validated. Looking ahead, management raised its full-year diluted EPS guidance to $7.20 to $7.45, up from $7.10 to $7.35, while reiterating net sales growth expectations of 3.7% to 4.2% for the full year.

Key Takeaways

  • Positive customer traffic growth of 1.4% and average transaction amount increase of 0.5%
  • Gross margin expansion of 65 basis points driven by higher inventory markups and lower shrink and inventory damages
  • Operating profit growth of 10.8% year-over-year
  • Net interest expense decreased 26.9% to $47.2 million
  • Balanced category growth across all four merchandise categories

DG Forward Guidance & Outlook

Dollar General raised its full-year fiscal 2026 diluted EPS guidance to $7.20–$7.45, up from the prior range of $7.10–$7.35, reflecting a lower assumed effective tax rate of approximately 24.5% (vs. 25% previously). The company reiterated expectations for net sales growth of approximately 3.7%–4.2%, same-store sales growth of approximately 2.2%–2.7%, and capital expenditures of $1.4–$1.5 billion. The company plans approximately 4,730 real estate projects in fiscal 2026, including ~450 new U.S. stores, ~10 new Mexico stores, ~2,000 Project Renovate remodels, ~2,250 Project Elevate remodels, and ~20 relocations. Guidance assumes no share repurchases and excludes any potential impact from tariff refund payments.

24/7 Wall St

DG YoY Financials

Q1 2027 vs Q1 2026, source: SEC Filings

24/7 Wall St

DG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 27

“We are pleased with our first-quarter EPS performance, which exceeded our expectations as strong operating margin expansion more than offset the impact of severe winter weather and higher fuel costs. Our topline results were highlighted by positive customer traffic and balanced category growth, while continued progress on our key initiatives drove another quarter of strong operating profit growth.”

— Todd Vasos, Q1 2027 Earnings Press Release