Total Revenue

+5.3% (10,436.0M vs. 9,914.0M USD)

Total Revenue increased by about 5.3% YoY thanks to strong performance in all segments driven by new store openings and sustained improvement in same-store sales, consistent with past periods where similar growth drivers contributed (e.g., " " " ).

Consumables

+5.3% (8,636.7M vs. 8,210.9M USD)

Consumables grew by 5.3% YoY reflecting enhanced customer traffic and higher average transaction amounts that continue the category’s historical momentum, as evidenced in prior period trends (e.g., " " " ).

Seasonal

+6.2% (1,022.9M vs. 963.5M USD)

Seasonal sales rose by 6.2% YoY driven by improvements in same-store sales performance, suggesting a rebound in category activity that builds on past seasonal performance trends (e.g., " " " ).

Home Products

+5.9% (507.2M vs. 478.8M USD)

Home Products increased by 5.9% YoY indicating a recovery from previous declines; this improvement may be linked to better inventory management and shifting customer preferences that started to take effect in earlier periods (e.g., " " " ).

Apparel

+3.2% (269.2M vs. 260.9M USD)

Apparel sales saw a modest 3.2% YoY increase, reflecting the category’s ongoing sensitivity to discretionary spending patterns and continued lower growth relative to essential categories, as observed in previous period data (e.g., " " " ).

Operating Profit

+77.8% (576,113K vs. 323,802K USD)

Operating Profit surged by 77.8% YoY due to significant cost management improvements and operational efficiencies; the quarter benefited from a cleaner performance with fewer one-time charges compared to previous periods (e.g., " " ).

Net Income

+99% (391,928K vs. 196,529K USD)

Net Income nearly doubled (99% increase) as a result of the strong revenue gains combined with improved operating margins and tighter cost control measures that reversed some of the headwinds faced in earlier periods (e.g., " " ).

Basic EPS

+100% (1.78 vs. 0.89)

Basic EPS doubled YoY, reflecting the compounded effect of enhanced net income and improved profitability, with the underlying operational turnaround and reduced one-off costs reinforcing the gains seen in prior period improvements (e.g., " " ).

Net Sales Growth

FY 2025

3.4% to 4.4% "

3.7% to 4.7% "

raised

Same-Store Sales Growth

FY 2025

1.2% to 2.2% "

1.5% to 2.5% "

raised

EPS

FY 2025

$5.10 to $5.80 "

$5.2 to $5.8 "

raised

Capital Spending

FY 2025

$1.3 billion to $1.4 billion "

$1,300,000,000 to $1,400,000,000 "

no change

Real Estate Projects

FY 2025

Approximately 4,885 projects, including 575 new store openings, 2,000 full remodels, 2,250 Project Elevate remodels, and 45 locations with up to 15 additional new stores in Mexico "

Approximately 4,885 projects, including 575 new store openings in the United States, up to 15 in Mexico, 2,000 project renovate remodels, 2,250 project elevate remodels, and 45 relocations "

no change

Wage Rate Inflation/Increases

FY 2025

3.5% to 4% "

3.5% to 4% "

no change

Effective Tax Rate

FY 2025

no prior guidance

Approximately 23.5% "

no prior guidance

Incentive Compensation Expense

FY 2025

no prior guidance

Expected to be a headwind of approximately $180,000,000 to $200,000,000 "

no prior guidance

Quarterly Cash Dividend

FY 2025

$0.59 per share "

no current guidance

no current guidance

Leverage Ratio

FY 2025

Focused on improving debt metrics to support investment-grade credit ratings, which are BBB and Baa2 "

no current guidance

no current guidance

Operating Leverage

FY 2025

Expected to be pressured by a return to normalized short-term and long-term incentive compensation, representing a headwind of approximately $120 million "

no current guidance

no current guidance

Depreciation and Amortization

FY 2025

Expected to be a continued headwind due to higher capital spending and inflation in building materials in prior years "

no current guidance

no current guidance

Market share dynamics and consumer spending trends

Previous calls consistently discussed broad-based market share gains across consumable and non‐consumable categories alongside detailed analysis of consumer spending patterns, including financial pressure among the core customer (Q2: " " , Q3: " " , Q4: " " " " ).

In Q1 2026, Dollar General reported continued growth in market share with emphasis on increased trade‐in activity from higher‐income customers, broader category growth (seasonal, home, apparel) and detailed consumer spending trends showing both constraints and opportunities ( " " ).

Consistent focus with evolving sentiment – while the focus on market share and consumer spending remains, there’s a notable increased emphasis on attracting higher‐income and trade‐in customers, indicating a shift in consumer mix despite continued financial constraints ( " " ).

Operational efficiency and Back to Basics initiatives

Earlier periods emphasized operational improvements through supply chain enhancements, inventory management, reducing shrink and damages, and initiatives like SKU reduction and store remodels (Q2: " " " , Q3: " " , Q4: " " " ).

Q1 2026 continued this focus with improved shrink (61 basis points improvement), further inventory management gains, proactive investments in in‐store remodels (Project Elevate and Renovate) and a strong “Back to Basics” execution ( " " " " ).

Steady progress with incremental enhancements – the consistent strategy is refined in Q1 2026, showing further improvements in operational metrics and deeper execution focus compared to previous periods.

Inventory management enhancements and cost control

Over Q2–Q4 2025, efforts were discussed around inventory reduction (7%–13% reductions, SKU rationalization) and cost control through shrink mitigation and improved working capital (Q2: " " , Q3: " " , Q4: " " ).

Q1 2026 reports further reductions in merchandise inventory (5% overall and 7% per-store), continued SKU reduction, improved in-stock levels and disciplined shrink and damages control ( " " " ).

Consistent and reinforcing – the improvements in inventory and cost control are maintained, with Q1 2026 building on these efforts to bolster operational efficiency and financial performance.

Digital transformation and delivery expansion

Digital initiatives and delivery expansion were introduced in Q3 and elaborated in Q4 through the DG Media Network and DoorDash partnerships (Q3: " " , Q4: " " ). Q2 provided no discussion on this topic.

Q1 2026 spotlights the DG Media Network’s growth (25%+ increase in retail media volume) and leverages Dollar General’s expansive real estate to enhance home delivery, positioning the company as a fast delivery alternative ( " ).

Emerging and accelerating – after a brief absence in Q2 2025, digital transformation and delivery expansion efforts are receiving greater emphasis in Q1 2026, signaling an expanded digital engagement strategy.

Margin improvement strategies vs margin pressure risks

Across Q2–Q4 2025, management consistently discussed shrink mitigation, promotional markdowns, SG&A pressures (including incentive compensation, wage inflation, and depreciation) and measures to drive gross margin expansion (Q2: " " , Q3: " " , Q4: " " " ).

In Q1 2026, the focus remains on shrink mitigation, controlled inventory, and operational excellence to improve margins while acknowledging competing pressures such as increased markdowns, SG&A (notably incentive compensation headwinds of $180–$200 million) and tariff-related cost risks ( " " " " " ).

Balanced approach maintained – while effective cost‐mitigation measures continue, margin pressures from promotional activity and incentive compensation persist, indicating an ongoing challenge with only incremental improvements.

Tariff uncertainty and external economic headwinds

Tariff issues and external economic pressures were touched upon in Q4 2025 with plans for mitigation and acknowledgment of worsening consumer financial conditions ( " " " ). Q2 provided limited detail and Q3 had no explicit discussion.

Q1 2026 provides a detailed discussion of the evolving tariff environment (with reduced China exposure and mitigation strategies) and stresses that external economic headwinds remain, marked by consumer income declines and shifts in spending behavior ( " " " ).

Heightened focus – the discussion in Q1 2026 reflects a more detailed and proactive approach to managing tariff uncertainties and economic headwinds compared to earlier periods, underlining their growing importance in the company’s strategy.

Competition from mass retailers and evolving consumer behavior

This topic was consistently addressed – from discussions on mass retailers impacting market share and promotional pressures (Q2: " " " , Q3: " " , Q4: " " ) to consumer budget constraints and evolving behaviors.

Q1 2026 emphasizes Dollar General’s everyday low price positioning along with increased trade‐in activity among higher-income consumers, signaling effective differentiation despite a competitive promotional landscape ( " " " ).

Shifting focus – while competition remains constant, there is a stronger emphasis in Q1 2026 on capturing trade-down behavior and attracting higher-income segments, reflecting evolving consumer behavior and an adaptive strategy in a competitive market.

Emerging focus on trade‐in momentum

Earlier periods showed mixed signals: Q2 noted slower trade-in from middle and upper-middle income cohorts ( " ), while Q4 reported an accelerating trade-down trend ( " " " ). Q3 did not address it.

In Q1 2026, Dollar General reported the highest percentage of trade-in customers in four years, with increased frequency of trips and higher discretionary spending among new customers ( " " " ).

Strengthening trend – the evolution from slower trade-in activity in Q2 to a significant increase in Q1 2026 highlights an emerging and robust trade-in momentum strategy.

High SG&A and incentive compensation challenges

Discussions over Q2–Q4 2025 highlighted rising SG&A ratios—from moderate increases in Q2 (24.6% with reduced incentive expenses " ) to higher figures in Q3 (25.7% with wage and hurricane impacts " " " ) and Q4 (26.5% with normalized incentive pay and added headwinds " " " ).

Q1 2026 reported SG&A at 25.4% with challenges primarily from retail labor, incentive compensation (forecasted headwind of $180–$200 million) and repairs and maintenance expenses ( " " " ).

Persistent challenge – while SG&A pressures have been a continuous theme, Q1 2026 reiterates these issues without significant relief, underscoring the ongoing need for focused cost control measures.

Disappearance of one‑off cost drivers (hurricane-related expenses)

Q3 2025 explicitly discussed one‑off hurricane-related expenses (recorded at $32.7 million, with further anticipated in Q4 " " " ); Q2 and Q4 did not mention these costs.

Q1 2026 makes no mention of one‑off cost drivers like hurricane-related expenses.

Normalization – the absence of discussion in Q1 2026 suggests that these one‑off hurricane-related expenses have disappeared from the narrative, providing relief in the expense profile compared to the notable impacts seen in Q3 2025.