GOODLETTSVILLE, TN - Dollar General Corporation reported financial results for its second quarter (13 weeks) ended July 31, 2026.
Second Quarter Fiscal Year 2026 Highlights
- Net Sales Increased 5.2% to $11.3 Billion
- Same-Store Sales Increased 3.5%
- Operating Profit Increased 29.2% to $769.2 Million
- Diluted Earnings Per Share (“EPS”) Increased 33.3% to $2.48
- Year-to-Date Cash Flow From Operations of $1.5 Billion
- Board of Directors Declares Quarterly Cash Dividend of $0.59 per share
“We are pleased with our second quarter performance, which included balanced topline growth, healthy operating margin expansion and strong double-digit EPS growth,” said Todd Vasos, Dollar General’s chief executive officer, in the recent release. “These results, which exceeded our expectations even before considering the benefit from tariff refunds after related reinvestments, are a testament to the strong execution, strategic direction, and continued dedication of our team. I want to thank our associates in our stores, distribution centers, private fleet, and store support center for the work they do every day to fulfill our mission of Serving Others.”
“Our results reflect continued momentum across the business, including our fifth consecutive quarter of customer traffic growth and the sixth consecutive quarter of positive comparable sales growth across all four merchandising categories. This broad-based performance reflects the strength of our unique combination of value and convenience and the important role Dollar General plays in the communities we serve. As we move through the back half of the year, we remain confident in our strategy, our long-term financial framework, and our ability to continue driving value for our customers, associates, and shareholders.”
Second Quarter Fiscal Year 2026 Overview
Net sales increased 5.2% to $11.3 billion in the second quarter of fiscal 2026 compared to $10.7 billion in the second quarter of fiscal 2025. The net sales increase was driven by growth in same-store sales and positive sales contributions from new stores, partially offset by the impact of store closures. Same-store sales increased 3.5% compared to the second quarter of fiscal 2025, reflecting increases of 2.0% in customer traffic and 1.5% in average transaction amount. Same-store sales in the second quarter of fiscal 2026 included growth in each of the consumables, seasonal, home products, and apparel categories.
Gross profit as a percentage of net sales was 32.6% in the second quarter of fiscal 2026 compared to 31.3% in the second quarter of fiscal 2025, an increase of 127 basis points. This gross profit rate increase was primarily attributable to tariff refunds, a lower LIFO provision, and lower distribution costs; partially offset by increased markdowns and increased transportation costs. The Company estimates the gross margin benefit of tariff refunds, after related reinvestments, was approximately 81 basis points.
Selling, General and Administrative Expenses (“SG&A”) as a percentage of net sales were essentially flat year over year, at 25.8% in both the second quarter of fiscal 2026 and the second quarter of fiscal 2025. The primary expense that was higher as a percentage of net sales in the second quarter of 2026 was depreciation and amortization, offset by rent, which was lower as a percentage of sales.
Operating profit for the second quarter of fiscal 2026 increased 29.2% to $769.2 million compared to $595.4 million in the second quarter of fiscal 2025. The Company estimates the operating margin benefit of tariff refunds, after related reinvestments, was approximately 66 basis points.
Net interest expense for the second quarter of fiscal 2026 decreased 25.7% to $42.9 million compared to $57.7 million in the second quarter of fiscal 2025.
The effective income tax rate in the second quarter of fiscal 2026 was 24.2% compared to 23.5% in the second quarter of fiscal 2025. This higher effective income tax rate was primarily due to expired federal tax credits, partially offset by a reduced state effective tax rate.
The Company reported net income of $550.3 million for the second quarter of fiscal 2026, an increase of 33.8% compared to $411.4 million in the second quarter of fiscal 2025. Diluted EPS increased 33.3% to $2.48 for the second quarter of fiscal 2026 compared to diluted EPS of $1.86 in the second quarter of fiscal 2025, including an estimated benefit from tariff refunds, after related reinvestments, of approximately $0.25.
