Dollar General raised its fiscal 2026 earnings guidance to $7.20-$7.45 per share from the prior range of $7.10-$7.35, reflecting confidence in ongoing margin improvement. First-quarter earnings rose 12.4% to $2.00 per share, outpacing a 3.4% sales increase, as operating profit climbed 10.8% to $638.5 million. Gross margin expanded 65 basis points, helped by higher inventory markups and lower shrink, while operating margin widened 40 basis points despite higher fuel costs and weather disruptions. Management highlighted a 28-basis-point improvement in shrink and better-than-expected inventory damage trends, along with benefits from category management, supply-chain productivity, and the DG Media Network. The company expects full-year gross margin expansion of about 40 basis points, even with headwinds from elevated fuel costs and tougher comparisons.
Dollar General CorporationRaised fiscal 2026 earnings guidance and reported strong Q1 earnings beat with margin expansion.
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