Dollar General (7DG) Q2 2026 Earnings Report
CH:7DG Q2 2026 EPS Results
- Actual EPS
- CHF 2.04
- Consensus EPS
- CHF 1.66
- Beat/Miss
- Beat by +CHF 0.38
- One Year Ago EPS
- CHF 1.53
CH:7DG Q2 2026 Revenue Results
- Actual Revenue
- CHF 9.30B
- Expected Revenue
- CHF 9.22B
- Beat/Miss
- Beat by +CHF 78.19M
- YoY Revenue Growth
- +5.24%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 08/27/2026
- Time
- Before Open
- Conference Call
- Thursday, August 27, 2026
Dollar General's next earnings date is estimated for December 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
The call was strongly positive overall. Dollar General reported broad-based sales, traffic, market share, margin, operating profit, EPS, inventory, and cash-flow improvements; raised fiscal 2026 guidance; and announced an earlier-than-planned resumption of share repurchases. Management also described continued progress in remodels, delivery, digital initiatives, store expansion, shrink reduction, and productivity. The main challenges were financially strained customers, elevated fuel and transportation costs, expected modest SG&A deleverage, the reduced contribution from tariff refunds in the second half, and a difficult Q4 comparison.
For fiscal 2026, Dollar General expects net sales growth in the range of 4%-4.3%, same store sales growth in the range of 2.5%-2.9%, and EPS in the range of $7.80-$8, including the approximate $0.25 Q2 benefit from tariff refunds after related reinvestments; EPS guidance assumes an effective tax rate of approximately 24.5% and up to $700 million of share repurchases in the back half of the year. The company expects inventory to grow at a rate below its sales growth, gross margin expansion in the second half, modest SG&A deleverage in 2026, and no material impact from tariff refunds after related reinvestments in the second half, while capital spending and real estate projects remain unchanged from previously stated amounts. It expects 2,000 Project Renovate remodels, 2,250 Project Elevate remodels, 450 new stores in the U.S., approximately 10 stores in Mexico, and shrink and damages to contribute about 50 basis points of incremental gross margin expansion off the 2025 base.
- Second-Quarter Results Exceeded ExpectationsManagement said balanced top-line growth, healthy operating margin expansion, and strong double-digit EPS growth each exceeded expectations, even before considering tariff refunds.
- Same-Store Sales and Customer Traffic GrowthSame-store sales increased 3.5% in Q2, driven by 2% customer traffic growth and 1.5% average basket growth. This was the fifth consecutive quarter of customer traffic growth.
- Broad-Based Category and Market Share GainsDollar General grew market share in both dollars and units in highly consumable products and also increased market share in non-consumables. All four merchandising categories delivered positive comp sales for the sixth consecutive quarter, with non-consumables again outpacing consumables.
- Value Valley and Dollar Price-Point MomentumValue Valley comp sales increased more than 16% in Q2. The offering now includes more than 600 rotating items priced at $1, while the company has more than 2,000 items across the store priced at or below $1. Dollar General expanded $1 off-shelf displays to more than 9,000 stores, which are generating incremental comp sales greater than the rest of the chain.
- Strong Non-Consumables PerformanceCombined non-consumable comp sales increased 4.5% in Q2. Growth was led by toys, including on-trend and licensed products, and non-consumables continued to create a positive mix shift impact within gross margin.
- Delivery Business Driving Incremental SalesDelivery contributed an estimated 40 basis points to Q2 comp sales growth. The collective delivery offerings generated approximately 80% sales incrementality, with high customer repeat rates. More than one million customers first engaged through delivery and subsequently became in-store shoppers.
- Improved Gross Margin and Operating ProfitGross profit as a percentage of sales increased 127 basis points to 32.6%, primarily due to tariff refunds, a lower LIFO provision, and lower distribution costs, partially offset by increased markdowns and transportation costs. Operating profit increased 29.2% to $769 million, while operating margin increased 126 basis points to 6.8%.
- Strong EPS GrowthDiluted EPS increased 33% to $2.48, including an approximate $0.25 benefit from tariff refunds after related reinvestments.
- Shrink and Damages ImprovementsManagement reported continuing improvement in damages and shrink in Q2. Shrink improved despite lapping a 108-basis-point improvement in Q2 2025, and the company continues to expect shrink and damages to contribute about 50 basis points of incremental gross margin expansion off the 2025 base.
- Inventory and Cash Flow ProgressMerchandise inventories were $6.6 billion at the end of Q2, essentially flat year over year and down 2.7% on an average per-store basis. Year-to-date operating cash flow through Q2 was $1.5 billion, providing flexibility to reinvest in the business, return cash to shareholders, and strengthen the balance sheet.
- Share Repurchase Program ResumingDollar General plans to resume share repurchases in Q3 and repurchase up to $700 million of common stock in the second half, funded with cash on hand. Management said the restart is ahead of the initial long-term framework expectation to resume repurchases at some point during 2027.
- Full-Year Guidance RaisedThe company raised fiscal 2026 guidance to net sales growth of 4%-4.3%, same-store sales growth of 2.5%-2.9%, and EPS of $7.80-$8, including the approximate $0.25 Q2 benefit from tariff refunds after related reinvestments.
- Expected Second-Half Gross Margin ExpansionDespite much higher than anticipated fuel costs, management expects gross margin expansion in the second half, supported by continued improvements in shrink and damages, DG Media Network growth, non-consumables merchandising, supply chain productivity, and category management.
- Store Remodel Program ProgressThrough the end of Q2, Dollar General completed 1,324 Project Renovate remodels and 1,422 Project Elevate remodels. The company continues to expect 2,000 Renovate remodels and 2,250 Elevate remodels this year, with targeted annualized comp sales lifts of approximately 6% and 3%, respectively.
- New Store Expansion and Mexico GrowthDollar General opened 125 new U.S. stores in Q2 and continues to plan for 450 U.S. store openings in 2026. It also opened one Mi Súper Dollar General store in Mexico during Q2, bringing the total Mexico store count to 22, with approximately 10 Mexico openings planned for 2026.
- Digital, Media Network, and AI InitiativesThe company is scaling delivery, personalizing the customer experience, and growing the DG Media Network. The media network had $170 million in annual volume at the end of last year and is expected to grow meaningfully. Dollar General is also building agentic operating systems to optimize workflows and improve productivity, while subscription and loyalty initiatives are expected to be piloted at the end of 2026 and rolled out fully in 2027.
- New Store Format Showing Positive Early ResultsThe DGTP '26 format opens the front of the store, improves sight lines, and adjusts product adjacencies. Management said the format is generating great results in food and snacks, health and beauty, and home and seasonal products, although it remains in the early stages of rollout.
- Lower Year-Over-Year Employee TurnoverManagement reported lower year-over-year turnover across stores, distribution centers, the private fleet, and the store support center, attributing the improvement to continued investment in team growth and development.
CH:7DG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Dec 03, 2026 | 2026 (Q3) | 1.16- | 1.05 | ― | ― |
| Aug 27, 2026 | 2026 (Q2) | 1.662.04 | 1.53 | 33.33% (+0.51) | |
| Jun 02, 2026 | 2026 (Q1) | 1.551.65 | 1.47 | 12.36% (+0.18) | |
| Mar 12, 2026 | 2025 (Q4) | 1.371.59 | 1.38 | 14.88% (+0.21) | |
| Dec 04, 2025 | 2025 (Q3) | 0.781.05 | 0.73 | 43.82% (+0.32) | |
| Aug 28, 2025 | 2025 (Q2) | 1.301.53 | 1.4 | 9.41% (+0.13) | |
| Jun 04, 2025 | 2025 (Q1) | 1.221.47 | 1.36 | 7.88% (+0.11) | |
| Mar 13, 2025 | 2024 (Q4) | 1.241.38 | 1.51 | -8.20% (-0.12) | |
| Dec 05, 2024 | 2024 (Q3) | 0.770.73 | 1.04 | -29.37% (-0.30) | |
| Aug 29, 2024 | 2024 (Q2) | 1.481.40 | 1.75 | -20.19% (-0.35) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.