GOODLETTSVILLE, August 28, 2026, 04:51 (EDT) — Dollar General shares were up 2.5% after the retailer reported a boost in traffic that lifted earnings per share to $2.48.
- Dollar General ended Thursday’s session at $125.89, rising 2.5%.
- Sales for the quarter increased by 5.2%, reaching $11.29 billion.
- Same-store sales rose by 3.5%, driven by a 2% uptick in customer traffic.
- Fiscal 2026 earnings per share forecast increased to $7.80–$8.00.
Shares of Dollar General Corporation NYSE:DG gained 2.5% on Thursday, supported by higher customer traffic, improved margins and an upgraded forecast. The stock ended the session at $125.89.
The increase was less than the initial 8% jump. This pullback reflects the ongoing investor discussion. Dollar General is making progress with its turnaround, yet some of the profit outperformance resulted from tariff reimbursements.
Net sales climbed 5.2% to $11.29 billion. Comparable store sales advanced 3.5%, driven by a 2% rise in customer traffic and a 1.5% uptick in average transaction value company results.
Traffic has risen for five straight quarters. The pattern indicates that shoppers looking to save money are combining errands at local discount retailers. Elevated fuel and grocery prices are supporting this trend.
Gross margin climbed by 127 basis points to reach 32.6%. Operating profit increased 29.2% to $769.2 million. Net income rose 33.8% to $550.3 million.
Diluted earnings rose to $2.48 per share, an increase of 33%. Analysts had forecast around $2.00. Tariff refunds added approximately $0.25 per share, boosting gross margin by nearly 81 basis points.
| Q2 metric | Result | Change or driver |
|---|---|---|
| Net sales | $11.29 billion | Gained 5.2% from a year earlier |
| Same-store sales | +3.5% | Traffic up 2.0%; ticket rose 1.5% |
| Gross margin | 32.6% | Expanded by 127 basis points |
| Operating profit | $769.2 million | Increased 29.2% |
| Net income | $550.3 million | Climbed 33.8% |
| Diluted EPS | $2.48 | Up 33.3% |
Management lifted its projected annual net sales growth to a range of 4.0%–4.3%. The company now anticipates comparable-sales growth between 2.5%–2.9%. Diluted EPS guidance was raised to $7.80–$8.00, up from the prior outlook of $7.20–$7.45.
The company intends to resume share repurchases in the third quarter and is targeting up to $700 million in buybacks for the second half. This represents about 2.5% of its $27.8 billion market capitalization as of Thursday.
The stock moved within a range of $124.50 to $132.50. Trading volume totaled roughly 6.4 million shares, over double the recent average. By the close, the majority of earlier gains had been given up market data.
Dollar Tree provided a notable comparison. Comparable sales increased by 3.7%, but the stock declined by 3.9% after executives cautioned that reinvestment would weigh on short-term earnings. Dollar General saw similarly strong demand, along with more definite margin gains peer results.
Wall Street sentiment is cautious. Analysts polled by Investing.com have set an average target price of $134.21. Prior to the earnings, Oppenheimer reiterated its Buy rating with a $150 price objective analyst consensus.
Risks: Higher fuel prices may curb spending among key customers. Refunds from tariffs might not be repeated. Increases in wage, freight, and shrink expenses could offset margin improvements, and demand for non-consumables stays optional.
Dollar General’s quarter bolsters its operational argument. Footfall is increasing, margins are rebounding and share repurchases have resumed. The subdued finish indicates investors remain eager for gains without the need for short-term tariff relief.
