Dollar General posts stronger Q2 results, raises full year guidance

Dollar General reported stronger-than-expected second quarter results on Aug. 28, 2025, as the discount retailer posted $10.7 billion in net sales, a 5.1 percent increase from a year earlier, and diluted earnings per share of $1.86, up 9.4 percent. Same-store sales rose 2.8 percent, and management raised its full-year fiscal 2025 guidance for net sales growth to a range of 4.3 to 4.8 percent, same-store sales to 2.1 to 2.6 percent, and GAAP diluted EPS to $5.08 to $6.30.

Executives credited a combination of margin improvement, faster-than-expected shrink reduction, and a stepped-up digital and delivery strategy for the outperformance. Gross profit margin widened to 31.3 percent, a 137 basis point gain year over year, driven principally by a 108 basis point improvement in shrink from theft, error, or damage. Kelly Dilts, the company chief financial officer, said the shrink gains have been broad based, noting progress even at stores that never had self-checkout and pointing to initiatives such as SKU rationalization. Dilts said shrink reduction could ultimately contribute more than the roughly 80 basis point operating margin tailwind assumed in the retailer’s long-term framework.