Dollar General reported better-than-expected financial results for its third quarter, leading the company to raise its profit outlook for the rest of the year. The discount retailer saw both profit and sales increase as more shoppers visited its stores, especially in both everyday and non-essential product categories.
For the quarter ended October 31, 2025, Dollar General's net sales rose 4.6% to $10.6 billion, and same-store sales increased by 2.5%. Profits also improved, with operating profit climbing 31.5% to $425.9 million and earnings per share rising to $1.28 from $0.89 a year ago.
The company credited its gains to an increase in customer traffic, cost-cutting efforts, and better management of inventory. These results outperformed Wall Street estimates, boosting the company's stock by over 7% after the announcement.
Dollar General's board of directors also declared a quarterly cash dividend, and the company highlighted strong cash flow from operations so far this year. The retailer now expects higher annual profits, reflecting continued strong demand at its stores.
The stock rose because the company reported better-than-expected earnings and raised its outlook for future profits, showing stronger business performance.
Same-store sales measure how much sales increased at stores open for at least a year. It's important because it shows growth at existing locations, not just from new stores.
Dollar General gained market share and saw more customer traffic than some of its rivals during the quarter.
It means the company expects to earn more than previously predicted, which can be a positive sign for investors.
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