USA: Dollar General posts higher first-quarter sales and profit, raises operating performance

Discount Variety Retail Chain Dollar General Corp. outpaced initial expectations for the first quarter ending May 2, 2026, delivering solid growth despite severe winter weather and store closures. Net sales rose 3.4% to $10.8 billion, anchored by a 2% increase in same-store sales—driven by a 1.4% uptick in foot traffic and a slightly higher average ticket size. Growth was balanced across all core merchandise categories (consumables, apparel, seasonal, and home goods) alongside contributions from new locations.

Profitability saw an even sharper upward trajectory. Operating profit grew 10.8% to $638.5 million, while diluted EPS climbed 12.4% to $2.00. Gross profit margin expanded by 60 basis points to 31.6%, fueled by stronger inventory markups and a reduction in shrink and damages, which successfully offset rising transportation costs and markdowns.

On the operational front, the retailer aggressively expanded and modernized its footprint during the quarter, opening 195 new stores (including 5 in Mexico) and upgrading over 1,300 locations via its Project Renovate and Project Elevate initiatives. Backed by $716.2 million in operational cash flow and a steady 59-cent quarterly dividend, CEO Todd Vasos expressed strong confidence in using the company's real estate density and operational framework to navigate ongoing macroeconomic pressures.

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