Dollar General Corporation Reports First Quarter 2025 Results
Raises Financial Guidance for Fiscal Year 2025
Goodletsville, TN — Dollar General reported financial results for its fiscal year 2025 first quarter (13 weeks) ended May 2, 2025.
- Net Sales Increased 5.3% to $10.4 Billion
- Same-Store Sales Increased 2.4%
- Operating Profit Increased 5.5% to $576.1 Million
- Diluted Earnings Per Share (“EPS”) Increased 7.9% to $1.78
- Cash Flows From Operations Increased 27.6% to $847.2 Million
- Board of Directors Declares Quarterly Cash Dividend of $0.59 per share
“We are pleased with our start to the year, including strong same-store sales and EPS results,” said Todd Vasos, Dollar General’s chief executive officer. “Our efforts to improve execution and enhance the associate and customer experience are yielding positive outcomes in both our operational performance and our financial results. I want to thank our team for their hard work and dedication to serving our customers and communities with value and convenience every day. These efforts contributed to market share gains in sales of both consumables and non-consumables, and drove growth with both our core customer and trade-in customers during the quarter.”
“Looking ahead, we are uniquely well-positioned to serve our customer in a variety of economic environments. We are proud of our progress and are excited about the future of this business, as we look to further create sustainable long-term value for our shareholders.”
First Quarter Fiscal 2025 Highlights
Net sales increased 5.3% to $10.4 billion in the first quarter of 2025 compared to $9.9 billion in the first quarter of 2024. The net sales increase was driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures. Same-store sales increased 2.4% compared to the first quarter of 2024, reflecting a 2.7% increase in average transaction amount and a 0.3% decrease in customer traffic. Same-store sales in the first quarter of 2025 included growth in each of the consumables, seasonal, home products, and apparel categories.
Gross profit as a percentage of net sales was 31.0% in the first quarter of 2025 compared to 30.2% in the first quarter of 2024, an increase of 78 basis points. This gross profit rate increase was driven primarily by lower shrink and higher inventory markups; partially offset by increased markdowns.
Selling, General and Administrative Expenses (“SG&A”) as a percentage of net sales were 25.4% in the first quarter of 2025 compared to 24.7% in the first quarter of 2024, an increase of 77 basis points. The primary expenses that were a higher percentage of net sales in the first quarter of 2025 were retail labor, incentive compensation, and repairs and maintenance.
Operating profit for the first quarter of 2025 increased 5.5% to $576.1 million compared to $546.1 million in the first quarter of 2024.
Interest expense for the first quarter of 2025 decreased 10.8% to $64.6 million compared to $72.4 million in the first quarter of 2024.
The effective income tax rate in the first quarter of 2025 was 23.4% compared to 23.3% in the first quarter of 2024.
The Company reported net income of $391.9 million for the first quarter of 2025, an increase of 7.9% compared to $363.3 million in the first quarter of 2024. Diluted EPS increased 7.9% to $1.78 for the first quarter of 2025 compared to diluted EPS of $1.65 in the first quarter of 2024.
Merchandise Inventories
As of May 2, 2025, total merchandise inventories, at cost, were $6.6 billion compared to $6.9 billion as of May 3, 2024, a decrease of 7.0% on an average per-store basis.
Capital Expenditures
Total additions to property and equipment in the first quarter of 2025 were $291 million, including approximately: $167 million for improvements, upgrades, remodels and relocations of existing stores; $76 million related to store facilities, primarily for leasehold improvements, fixtures and equipment in new stores; $36 million for distribution and transportation-related projects; and $12 million for information systems upgrades and technology-related projects. During the first quarter of 2025, the Company opened 156 new stores, remodeled 668 stores through Project Elevate and remodeled 559 stores through Project Renovate, and relocated 23 stores.
Dividend
On June 2, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.59 per share on the Company’s common stock, payable on or before July 22, 2025, to shareholders of record on July 8, 2025. While the Board of Directors currently intends to continue regular cash dividends, the declaration and amount of future dividends are subject to the sole discretion of the Board and will depend upon, among other things, the Company’s results of operations, cash requirements, financial condition, contractual restrictions, excess debt capacity, and other factors the Board may deem relevant in its sole discretion.
Fiscal Year 2025 Financial Guidance and Store Growth Outlook
While the Company’s first quarter 2025 financial results exceeded its internal expectations, uncertainty exists for the remainder of the year regarding the potential impact of tariffs on the business, and particularly on consumer behavior. The tariff environment remains highly dynamic, and the specific tariffs applicable to goods imported by the Company and its suppliers into the U.S. continue to evolve.
The Company is updating its expectations for the year, primarily to reflect its outperformance in the first quarter and the tariff uncertainty discussed above. This updated guidance assumes the Company will be able to mitigate a significant portion of the potential impact to its cost of goods from tariffs at currently implemented rates, but that consumer spending could be pressured by tariff-related price increases.
The updated guidance assumes current tariff rates remain in place through mid-August 2025, and the Company has plans in place to address the potential reversion to the tariff rates previously announced on goods from China on April 2, 2025.
As a result, the Company now expects the following for the fiscal year ending January 30, 2026 (“fiscal year 2025”):
- Net sales growth of approximately 3.7% to 4.7%, compared to its previous expectation of approximately 3.4% to 4.4%
- Same-store sales growth of approximately 1.5% to 2.5%, compared to its previous expectation of approximately 1.2% to 2.2%
- Diluted EPS approximately $5.20 to $5.80, compared to its previous expectation of approximately $5.10 to $5.80
- Diluted EPS guidance continues to assume an effective tax rate of approximately 23.5%
The Company continues to expect capital expenditures, including those related to investments in the Company’s strategic initiatives, in the range of $1.3 billion to $1.4 billion.
The Company’s financial guidance continues to assume no share repurchases in fiscal year 2025.
The Company is also reiterating its plans to execute approximately 4,885 real estate projects in fiscal year 2025, including opening approximately 575 new stores in the U.S. and up to 15 new stores in Mexico, remodeling approximately 2,000 stores through Project Renovate, remodeling approximately 2,250 stores through Project Elevate, and relocating approximately 45 stores.
| DOLLAR GENERAL CORPORATION AND SUBSIDIARIES | |||||||||
| Consolidated Balance Sheets | |||||||||
| (In thousands) | |||||||||
|
|
|||||||||
|
(Unaudited) |
|
|
|||||||
|
May 2, |
|
May 3, |
|
January 31, |
|||||
|
2025 |
|
2024 |
|
2025 |
|||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents |
$ |
850,018 |
$ |
720,700 |
$ |
932,576 |
|||
| Merchandise inventories |
|
6,590,096 |
|
6,934,389 |
|
6,711,242 |
|||
| Income taxes receivable |
|
31,896 |
|
34,946 |
|
127,132 |
|||
| Prepaid expenses and other current assets |
|
424,293 |
|
406,936 |
|
392,975 |
|||
| Total current assets |
|
7,896,303 |
|
8,096,971 |
|
8,163,925 |
|||
| Net property and equipment |
|
6,279,529 |
|
6,172,496 |
|
6,209,481 |
|||
| Operating lease assets |
|
11,218,240 |
|
11,138,733 |
|
11,163,763 |
|||
| Goodwill |
|
4,338,589 |
|
4,338,589 |
|
4,338,589 |
|||
| Other intangible assets, net |
|
1,199,700 |
|
1,199,700 |
|
1,199,700 |
|||
| Other assets, net |
|
55,300 |
|
63,010 |
|
57,275 |
|||
| Total assets |
$ |
30,987,661 |
$ |
31,009,499 |
$ |
31,132,733 |
|||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Current portion of long-term obligations |
$ |
19,591 |
$ |
769,139 |
$ |
519,463 |
|||
| Current portion of operating lease liabilities |
|
1,478,895 |
|
1,406,970 |
|
1,460,114 |
|||
| Accounts payable |
|
3,836,222 |
|
3,472,487 |
|
3,833,133 |
|||
| Accrued expenses and other |
|
1,031,210 |
|
976,076 |
|
1,045,856 |
|||
| Income taxes payable |
|
37,747 |
|
17,190 |
|
10,136 |
|||
| Total current liabilities |
|
6,403,665 |
|
6,641,862 |
|
6,868,702 |
|||
| Long-term obligations |
|
5,724,739 |
|
6,222,387 |
|
5,719,025 |
|||
| Long-term operating lease liabilities |
|
9,794,789 |
|
9,723,314 |
|
9,764,783 |
|||
| Deferred income taxes |
|
1,096,048 |
|
1,157,660 |
|
1,103,701 |
|||
| Other liabilities |
|
264,757 |
|
264,097 |
|
262,815 |
|||
| Total liabilities |
|
23,283,998 |
|
24,009,320 |
|
23,719,026 |
|||
| Commitments and contingencies | |||||||||
| Shareholders’ equity: | |||||||||
| Preferred stock |
|
– |
|
– |
|
– |
|||
| Common stock |
|
192,557 |
|
192,407 |
|
192,447 |
|||
| Additional paid-in capital |
|
3,838,541 |
|
3,774,363 |
|
3,812,590 |
|||
| Retained earnings |
|
3,667,792 |
|
3,032,996 |
|
3,405,683 |
|||
| Accumulated other comprehensive income (loss) |
|
4,773 |
|
413 |
|
2,987 |
|||
| Total shareholders’ equity |
|
7,703,663 |
|
7,000,179 |
|
7,413,707 |
|||
| Total liabilities and shareholders’ equity |
$ |
30,987,661 |
$ |
31,009,499 |
$ |
31,132,733 |
|||
| DOLLAR GENERAL CORPORATION AND SUBSIDIARIES | ||||||||||
| Consolidated Statements of Income | ||||||||||
| (In thousands, except per share amounts) | ||||||||||
| (Unaudited) | ||||||||||
|
|
||||||||||
|
For the Quarter Ended |
||||||||||
|
May 2, |
% of Net |
|
May 3, |
% of Net |
||||||
|
2025 |
Sales |
|
2024 |
Sales |
||||||
| Net sales |
$ |
10,435,979 |
100.00 |
% |
$ |
9,914,021 |
100.00 |
% |
||
| Cost of goods sold |
|
7,204,691 |
69.04 |
|
6,921,872 |
69.82 |
||||
| Gross profit |
|
3,231,288 |
30.96 |
|
2,992,149 |
30.18 |
||||
| Selling, general and administrative expenses |
|
2,655,175 |
25.44 |
|
2,446,045 |
24.67 |
||||
| Operating profit |
|
576,113 |
5.52 |
|
546,104 |
5.51 |
||||
| Interest expense, net |
|
64,604 |
0.62 |
|
72,433 |
0.73 |
||||
| Income before income taxes |
|
511,509 |
4.90 |
|
473,671 |
4.78 |
||||
| Income tax expense |
|
119,581 |
1.15 |
|
110,354 |
1.11 |
||||
| Net income |
$ |
391,928 |
3.76 |
% |
$ |
363,317 |
3.66 |
% |
||
| Earnings per share: | ||||||||||
| Basic |
$ |
1.78 |
$ |
1.65 |
||||||
| Diluted |
$ |
1.78 |
$ |
1.65 |
||||||
| Weighted average shares outstanding: | ||||||||||
| Basic |
|
219,986 |
|
219,748 |
||||||
| Diluted |
|
220,135 |
|
220,052 |
||||||
| DOLLAR GENERAL CORPORATION AND SUBSIDIARIES | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
|
|
||||||||
|
For the Year Ended |
||||||||
|
(13 Weeks) |
|
(13 Weeks) |
||||||
|
May 2, |
|
May 3, |
||||||
|
|
|
2025 |
|
2024 |
||||
| Cash flows from operating activities: | ||||||||
| Net income |
$ |
391,928 |
|
$ |
363,317 |
|
||
| Adjustments to reconcile net income to net cash from operating activities: | ||||||||
| Depreciation and amortization |
|
252,793 |
|
|
232,286 |
|
||
| Deferred income taxes |
|
(7,682 |
) |
|
23,876 |
|
||
| Noncash share-based compensation |
|
30,273 |
|
|
21,846 |
|
||
| Other noncash (gains) and losses |
|
5,025 |
|
|
15,052 |
|
||
| Change in operating assets and liabilities: | ||||||||
| Merchandise inventories |
|
124,841 |
|
|
49,562 |
|
||
| Prepaid expenses and other current assets |
|
(29,329 |
) |
|
(42,650 |
) |
||
| Accounts payable |
|
(35,080 |
) |
|
(95,686 |
) |
||
| Accrued expenses and other liabilities |
|
(2,988 |
) |
|
14,814 |
|
||
| Income taxes |
|
122,847 |
|
|
83,797 |
|
||
| Other |
|
(5,473 |
) |
|
(2,408 |
) |
||
| Net cash provided by (used in) operating activities |
|
847,155 |
|
|
663,806 |
|
||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment |
|
(290,928 |
) |
|
(341,975 |
) |
||
| Proceeds from sales of property and equipment |
|
552 |
|
|
814 |
|
||
| Net cash provided by (used in) investing activities |
|
(290,376 |
) |
|
(341,161 |
) |
||
| Cash flows from financing activities: | ||||||||
| Repayments of long-term obligations |
|
(505,306 |
) |
|
(5,205 |
) |
||
| Payments of cash dividends |
|
(129,819 |
) |
|
(129,736 |
) |
||
| Other equity and related transactions |
|
(4,212 |
) |
|
(4,287 |
) |
||
| Net cash provided by (used in) financing activities |
|
(639,337 |
) |
|
(139,228 |
) |
||
| Net increase (decrease) in cash and cash equivalents |
|
(82,558 |
) |
|
183,417 |
|
||
| Cash and cash equivalents, beginning of period |
|
932,576 |
|
|
537,283 |
|
||
| Cash and cash equivalents, end of period |
$ |
850,018 |
|
$ |
720,700 |
|
||
| Supplemental cash flow information: | ||||||||
| Cash paid for: | ||||||||
| Interest |
$ |
100,729 |
|
$ |
117,837 |
|
||
| Income taxes |
$ |
4,098 |
|
$ |
3,036 |
|
||
| Supplemental schedule of non-cash investing and financing activities: | ||||||||
| Right of use assets obtained in exchange for new operating lease liabilities |
$ |
420,108 |
|
$ |
404,716 |
|
||
| Purchases of property and equipment awaiting processing for payment, included in Accounts payable |
$ |
129,150 |
|
$ |
128,936 |
|
||
| DOLLAR GENERAL CORPORATION AND SUBSIDIARIES | |||||||||
| Selected Additional Information | |||||||||
| (Unaudited) | |||||||||
|
|
|||||||||
| Sales by Category (in thousands) | |||||||||
|
|
|||||||||
|
For the Quarter Ended |
|
|
|||||||
|
May 2, |
|
May 3, |
|
|
|||||
|
2025 |
|
2024 |
|
% Change |
|||||
| Consumables |
$ |
8,636,680 |
$ |
8,210,850 |
5.2 |
% |
|||
| Seasonal |
|
1,022,943 |
|
963,514 |
6.2 |
% |
|||
| Home products |
|
507,176 |
|
478,791 |
5.9 |
% |
|||
| Apparel |
|
269,180 |
|
260,866 |
3.2 |
% |
|||
| Net sales |
$ |
10,435,979 |
$ |
9,914,021 |
5.3 |
% |
|||
| Store Activity | ||||||
|
|
||||||
|
For the Quarter Ended |
||||||
|
May 2, |
|
May 3, |
||||
|
2025 |
|
2024 |
||||
| Beginning store count |
20,594 |
|
19,986 |
|
||
| New store openings |
156 |
|
197 |
|
||
| Store closings |
(168 |
) |
(34 |
) |
||
| Net new stores |
(12 |
) |
163 |
|
||
| Ending store count |
20,582 |
|
20,149 |
|
||
| Total selling square footage (000’s) |
156,990 |
|
152,609 |
|
||
| Growth rate (square footage) |
2.9 |
% |
5.5 |
% |
||
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