Dollar General Corp (NYSE:DG) stock rose 5.35% (As on December 5, 11:15:21 AM UTC-4, Source: Google Finance) after the company reported third-quarter 2025 results that beat analyst expectations and offered optimistic forward guidance. The report highlighted improved same-store sales and operational efficiencies that buoyed investor confidence. The retailer benefited from cost-cutting efforts and better inventory management, as well as an influx of bargain-hunting shoppers in an uncertain economic environment. Dollar General’s focus on maintaining about 25% of its offerings at or below the $1 price point to resonate with its core customers – households earning less than $35,000 annually – has also made the company a go-to destination. The group now plans to slow its physical expansion to focus on improving the customer experience and profitability.
DG in the third quarter of FY25 has reported the adjusted earnings per share of $1.28, beating the analysts’ estimates for the adjusted earnings per share of 95 cents, according to data compiled by LSEG. The company had reported the adjusted revenue growth of 4.6 percent to $10.65 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $10.62 billion. Gross profit as a percentage of sales rose by 107 basis points year over year to 29.9% in the quarter, boosted mainly by lower shrink and higher inventory markups
The company projected annual earnings per share in the range of $6.30 to $6.50, compared with its earlier target of $5.80 to $6.30. The current consensus on FactSet is for $6.16. Sales are projected to grow between 4.7% and 4.9% for the ongoing fiscal year, compared with the prior forecast for a gain of 4.3% to 4.8%. It now expects annual same-store sales to grow between 2.5% and 2.7%, compared with its prior forecast of 2.1% to 2.6%. The Street is looking for sales of $42.52 billion and same-store sales growth of 2.5%. This rebound comes as discount chains, such as Dollar Tree or Walmart, attract a broader audience, including more affluent households, amid higher living costs and job uncertainties.
For fiscal 2026, Dollar General is looking to execute about 4,730 real estate projects, including plans to launch 450 new stores in the US and 10 branches in Mexico. It reiterated its aim to open roughly 575 new stores in the US and up to 15 branches in Mexico for the current fiscal year.