Description

Dollar General: Rebuilding Profitability With Shrink Control, Supply Chain Efficiency, and Store Execution!

Dollar General reported fourth-quarter and full-year fiscal 2025 results showing stronger sales, margin expansion, and continued execution against long-term strategic priorities. Fourth-quarter net sales rose 5.9% to $10.9 billion, supported by broad-based growth across consumable and nonconsumable categories. Same-store sales increased 4.3%, driven by higher traffic and basket size, while the company’s value positioning remained central, including strong traction in Value Valley, where comp sales grew 17.6%. Operationally, gross margin improved 105 basis points to 30.4% in the quarter, with full-year gross margin also up 107 basis points. The gains were driven mainly by shrink reduction, higher markups, and lower inventory damages. Shrink alone improved 62 basis points despite a difficult comparison. SG&A fell 165 basis points as a percentage of sales, helped by lower impairment charges and reduced retail salary expense, partly offset by higher incentive compensation.