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In a year marked by volatility and uncertainty, Dollar General (NYSE: DG) has been strong and steady.

The discount retail store chain has consistently produced solid earnings and its stock price has gradually churned higher, up an impressive 60% year-to-date.

It was more of the same on Thursday, as Dollar General released blowout third quarter earnings and raised its guidance as the stock price spiked some 11% to about $1.21 per share. Here are the key results.

• Net sales: $10.6 billion, up 4.6% year-over-year. This was in line with estimates.
• Net income: $2.8 billion, up 44% year-over-year.
• Earnings: $1.28 per share, up 44% year-over-year. This beat estimates of 93 cents per share.
• Same store sales increased 2.8%.

The discount retail chain has grown in a choppy and uncertain economic environment with its low prices and convenience with stores in local, rural communities. The company has a history of outperforming in challenging economic conditions.

The other big reason that Dollar General has navigated this particular market is that it has relatively little exposure to tariffs, certainly compared to its competitors. It imports very little from China and that has helped it control costs and keep prices down.

Expansion plans

The strong earnings growth has allowed Dollar General to boost its profits and its cash flows. In Q3, the company reported a 28% increase year-to-date in cash flow from operations to $2.8 billion. Its cash and cash equivalents have more than doubled over the past year, growing to about $1.2 billion as of October 31.

This provides the company with the necessary capital to expand, which it plans to do in fiscal 2026.

As America’s neighborhood general store in nearly 21,000 locations, we are focused on continuing to enhance our value and convenience proposition to serve both new and existing customers,” CEO Todd Vasos said.

In 2025, the company is on track to open 575 new stores in the U.S. and 15 new stores in Mexico. It is also on track to remodel some 4,250 stores and relocate 45.  

In fiscal 2026, the goal is to open approximately 450 new stores in the U.S. and 10 new stores in Mexico, remodel around 24,250 stores, and relocate some 20 stores.

Also, Dollar General raised its guidance for the fiscal year, calling for net sales growth of 4.7% to 4.9%, compared to its previous expectation of 4.3% to 4.8% growth. Same-store sales growth is targeted at 2.5% to 2.7%, up from the previous 2.1% to 2.6%.

Earnings are expected to be $6.30 to $6.50 per share, up from the previous guidance of $5.80 to $6.30 EPS.

Dollar General has long been a favorite, as it has been one of the most consistent stocks on the market for a long time. It remains a favorite. With a relatively low PE of 20 and a forward PE of 15, it is still a good bargain, even after today’s 11% surge.

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