Dollar General Corp (NYSE:DG) shares fell more than 4% on Thursday morning after the discount retailer issued guidance for fiscal 2026 that came in below Wall Street expectations, overshadowing stronger-than-expected fourth quarter results.
For the fourth quarter ended January 30, 2026, the company reported revenue of $10.91 billion, topping analyst estimates of $10.78 billion.
Earnings per share came in at $1.93, well above the consensus forecast of $1.61.
The retailer said Q4 net sales rose 5.9% year over year, while same-store sales increased 4.3%. Operating profit climbed sharply, more than doubling to $606.3 million, while diluted earnings per share surged 121.8% from the prior year period.
For the full fiscal year, Dollar General reported net sales of $42.7 billion, up 5.2%, and same-store sales growth of 3%. Operating profit rose 28.6% to $2.2 billion, and diluted EPS increased 34.1% to $6.85.
Despite the solid results, investors focused on the company’s modest outlook for fiscal 2026.
Dollar General said it expects net sales growth of 3.7% to 4.2% for the year ending January 29, 2027, implying revenue of about $44.1 billion at the midpoint, below the $44.43 billion consensus estimate. The company projected same-store sales growth of 2.2% to 2.7%.
On the bottom line, Dollar General forecasts diluted EPS of $7.10 to $7.35, roughly 5.5% growth at the midpoint, broadly in line with analysts’ expectations of $7.25.
The retailer also outlined an aggressive expansion and renovation plan for the year. Dollar General said it expects to execute approximately 4,730 real estate projects in fiscal 2026, including about 450 new stores in the United States and roughly 10 new stores in Mexico. The company also plans to remodel about 2,000 stores through its Project Renovate program and another 2,250 stores through Project Elevate, while relocating around 20 locations.
Capital expenditures for the year are projected to range between $1.4 billion and $1.5 billion, reflecting continued investment in store growth and strategic initiatives.
“Looking ahead to 2026, we are excited about our plans to drive continued growth through a variety of initiatives designed to further enhance the customer experience, elevate our brand, drive greater enterprise-wide efficiencies, and extend our reach, all while creating long-term shareholder value,” Dollar General CEO Todd Vasos said.