Dollar General Q2 Sales Up 5 Percent

Dollar General(NYSE:DG) reported its second quarter 2025 earnings on August 28, 2025, posting net sales of $10.7 billion, up 5.1% year-over-year, same-store sales growth of 2.8%, and diluted EPS increased 9.4% to $1.86. Management raised its fiscal 2025 guidance for net sales growth to 4.3%-4.8%, same-store sales to 2.1%-2.6%, and EPS (diluted, GAAP) to $5.08-$6.30, driven by strong gross margin expansion, outsized shrink reduction, robust digital progress, and improved execution in core and trade-in customer cohorts. The following analysis examines specific strategic advancements, operational inflections, and forward risks impacting Dollar General’s investment thesis.Gross profit margin increased by 137 basis points year-over-year to 31.3%, primarily due to an impressive 108 basis point improvement in shrink (inventory loss from theft, error, or damage), while damages improvement began to contribute incrementally. Management indicated that shrink could ultimately deliver more than the 80 basis point operating margin tailwind assumed in its long-term 6%-7% target model for Dollar General's financial framework, with results significantly beating expectations for both the pace and scale of improvement.Outperformance on shrink not only directly lifts earnings power, but also signals operational discipline and increases visibility to Dollar General’s mid-term margin ambitions despite retail sector volatility.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool