Dollar General Corporation (NYSE:DG) saw its shares rise 3.8% in premarket trading after the retailer posted third-quarter results that comfortably topped profit expectations and boosted its full-year guidance.
For the quarter, the discount chain reported adjusted earnings of $1.28 per share—well above the $0.94 analysts had forecast. Revenue totaled $10.6 billion, slightly under the $10.62 billion consensus estimate but up 4.6% from the year-ago period. Same-store sales grew 2.5%, fueled by a matching 2.5% increase in customer traffic, while the average ticket size held steady. The company recorded sales increases across all major product categories, including consumables, home goods, apparel, and seasonal items.
“These results were highlighted by EPS growth of 44%, strong operating margin performance, and balanced sales growth, including market share gains across both consumable and non-consumable categories,” said Todd Vasos, Dollar General’s chief executive officer.
Operating profit climbed 31.5% to $425.9 million, and gross margin expanded 107 basis points to 29.9%, reflecting improved profitability and cost efficiencies.
Dollar General also raised its full-year earnings outlook, projecting EPS of $6.30 to $6.50 versus analyst expectations of $6.13. The company now anticipates net sales growth of roughly 4.7% to 4.9%, slightly above its prior range of 4.3% to 4.8%.
In addition, the retailer unveiled its real estate expansion plan for fiscal 2026, which includes about 450 new U.S. stores, 10 new locations in Mexico, and upgrades to roughly 4,250 existing stores.