Full Breakdown
Dollar General and Dollar Tree Report Strong Q2 FY 2026 Sales as Shoppers Seek Value
8/29/2026, 7:46:10 AM
Core Results
Dollar General announced net sales of $11.3 billion, a 5.2% year-over-year increase, and comparable-store sales up 3.5% for the quarter that ended July 31. Operating profit rose 29.2% to $769.2 million, and diluted earnings per share climbed 33.3% to $2.48.
Dollar Tree reported net sales of $4.9 billion, a 7% rise, with comparable sales up 3.7% for its quarter that closed Aug. 1. Consumable sales grew 5.8%, traffic increased 0.4%, and the average basket rose over 3%.
Background & Context
The results came as U.S. consumers faced higher fuel prices, persistent inflation, and tighter household budgets. Discount retailers have benefited from “trade-down” behavior, with lower-income shoppers shifting to lower-priced essentials while higher-income households curb discretionary spending. Tariff refunds—$383 million for Dollar Tree and a similar amount for Dollar General—were earmarked for price reductions and store improvements.
Data & Statistics
| Metric | Dollar General | Dollar Tree |
|---|---|---|
| Net sales | $11.3 billion (?5.2%) | $4.9 billion (?7%) |
| Comparable-store sales | +3.5% | +3.7% |
| Customer traffic | +2% | +0.4% |
| Average basket size | +1.5% | >+3% |
| Consumable sales growth | — | +5.8% |
| Operating profit | $769.2 million (?29.2%) | — |
| Diluted EPS | $2.48 (?33.3%) | — |
| FY 2026 EPS outlook | $7.80-$8.00 (up from $7.20-$7.45) | $7.70-$8.05 (up from prior range) |
| Tariff refund benefit | ~ $0.25 per share | ~ $0.60 per share |
Official Statements & Responses
The firm highlighted a 5-year store-opening program that added 125 new U.S. locations and 1 in Mexico during the quarter, alongside remodels under “Project Renovate” and “Project Elevate.”
Analysts noted that higher gasoline prices are prompting consumers to shop closer to home, boosting traffic at Dollar General’s smaller-format stores, while warning that continued fuel-price pressure could compress margins later in the year.
Verbatim Quotes
- “Notably, this marks the fifth consecutive quarter of growth in customer traffic as we continue to build on the momentum in our business with both new and existing customers,” — Todd Vasos, CEO
- “We are putting those funds to work in areas where we believe they can have the greatest and most lasting impact,” — Stewart Glendinning, CFO
What’s Next
Both retailers will allocate tariff-refund funds to further price cuts on grocery and general-merchandise items throughout the year. Dollar General expects FY 2026 profit per share of $7.80-$8.00, incorporating an estimated $0.25 benefit from refunds. Dollar Tree projects EPS of $7.70-$8.05, reflecting a roughly $0.60 refund benefit.
The companies will continue expanding store footprints and remodeling existing locations, with Dollar General targeting additional openings in underserved markets in the back half of the fiscal year.
