Financial Data and Key Metrics Changes - Net sales increased by 5.1% to $10.7 billion in Q2 compared to $10.2 billion in the same quarter last year, driven by strong performance from new stores and mature store base [8] - Gross profit as a percentage of sales was 31.3%, an increase of 137 basis points, primarily due to lower shrink, higher inventory markups, and lower inventory damages [18] - Operating profit for Q2 increased by 8.3% to $595 million, with operating profit as a percentage of sales increasing by 16 basis points to 5.6% [19] - EPS for the quarter increased by 9.4% to $1.86, exceeding internal expectations [20] - Merchandise inventories decreased by 5.6% year-over-year to $6.6 billion, with a 7.4% decrease on an average per store basis [21] Business Line Data and Key Metrics Changes - Same store sales increased by 2.8%, driven by a balanced growth of 1.5% in customer traffic and 1.2% in average basket size [9] - Positive comp sales growth was observed across all categories, including consumables, seasonal, home, and apparel [9] - The $1 value merchandising set, comprising over 500 rotating SKUs, saw same store sales growth more than twice the rate of the overall company [12] Market Data and Key Metrics Changes - Market share grew in both dollars and units in highly consumable product sales, as well as in non-consumable product sales [9] - Customers across all income brackets increased spending, with notable growth from middle and higher-income customers contributing to non-consumable category performance [10] Company Strategy and Development Direction - The company is committed to delivering everyday low prices, maintaining prices within three to four percentage points of mass retailers [11] - Focus on enhancing the value and convenience proposition for customers, with a commitment to a substantial offering of items at or below the $1 price point [11] - Strategic initiatives include expanding the real estate footprint, enhancing mature store base, and leveraging digital capabilities for delivery and customer engagement [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for shrink reduction to contribute more than 80 basis points toward the operating margin goal of 6% to 7% [42] - The company raised its financial outlook for 2025, expecting net sales growth of approximately 4.3% to 4.8% and same store sales growth of approximately 2.1% to 2.6% [23] - Management acknowledged potential uncertainty in consumer behavior as the year progresses, particularly in Q4 [23] Other Important Information - The company plans to redeem $600 million of senior notes in Q3, ahead of their April 2027 maturity [25] - A new CFO, Donnie Lau, will join the company in October, bringing a deep understanding of the business and strategic leadership [14] Q&A Session Summary Question: Expectations on shrink contributing to long-term financial framework - Management is optimistic about outperforming shrink expectations but maintains a target of 6% to 7% operating margin [42] Question: Gross margin expectations for Q3 and execution progress - Management expects year-over-year improvement in gross margin but acknowledges tougher laps in Q4 [48] Question: Delivery partnerships and their impact - The DoorDash partnership has driven significant sales growth, with a 60% year-over-year increase, and the Uber Eats partnership is expected to expand delivery capabilities [57][60] Question: Customer behavior and value proposition - Management characterizes customers as resilient and seeking value, with a strong value proposition across all income cohorts [66] Question: Gross margin drivers and shrink recovery - Management highlighted ongoing initiatives to improve shrink and damages, with optimism for continued improvement in gross margin [72][75]

Financial Data and Key Metrics Changes - Net sales increased by 5.1% to $10.7 billion in Q2 compared to $10.2 billion in the same quarter last year, driven by strong performance from new stores and the mature store base [7] - Gross profit as a percentage of sales was 31.3%, an increase of 137 basis points, primarily due to lower shrink, higher inventory markups, and lower inventory damages [17] - Operating profit for Q2 increased by 8.3% to $595 million, with operating profit as a percentage of sales rising by 16 basis points to 5.6% [19] - EPS for the quarter increased by 9.4% to $1.86, exceeding internal expectations [20] - Merchandise inventories decreased by 5.6% year-over-year to $6.6 billion, with a 7.4% decrease on an average per store basis [20] Business Line Data and Key Metrics Changes - Same store sales increased by 2.8%, driven by a balanced growth of 1.5% in customer traffic and 1.2% in average basket size [8] - Positive comp sales growth was observed across all categories, including consumables, seasonal, home, and apparel [8][9] - The $1 value merchandising set, comprising over 500 rotating SKUs, saw same store sales growth more than twice the overall company rate [12] Market Data and Key Metrics Changes - Market share grew in both dollars and units for highly consumable product sales, as well as in non-consumable product sales [8] - Customers across all income brackets increased spending, with notable growth from middle and higher-income customers [9][10] Company Strategy and Development Direction - The company is committed to maintaining everyday low prices, operating within three to four percentage points of mass retailers [11] - Focus on enhancing the value and convenience proposition for customers, with a substantial offering of items at or below the $1 price point [11] - Continued investment in real estate, with plans for 4,885 projects in 2025, including 575 new store openings in the U.S. and up to 15 in Mexico [23] - Digital initiatives are being expanded, including partnerships with DoorDash and Uber Eats to enhance delivery options [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for shrink reduction to contribute more than 80 basis points toward the operating margin goal of 6% to 7% [17][24] - The company raised its financial outlook for 2025, expecting net sales growth of approximately 4.3% to 4.8% and same store sales growth of approximately 2.1% to 2.6% [23] - Management acknowledged potential uncertainty in consumer behavior as the year progresses, particularly in Q4 [23] Other Important Information - The company is transitioning to a new CFO, Donnie Lau, who is expected to begin in October [14] - The company is focused on improving its debt metrics to support a commitment to middle BBB ratings by S&P and Moody's [22] Q&A Session Summary Question: Expectations on operating margin due to shrink reduction - Management is optimistic about potentially outperforming shrink expectations but maintains a target of 6% to 7% for the operating margin [40][41] Question: Gross margin expectations for Q3 and execution progress - Management expects year-over-year improvement in gross margin but anticipates tougher comparisons in Q4 [46][47][49] Question: Insights on delivery partnerships and incrementality - The DoorDash partnership has driven significant sales growth, and the company is optimistic about the new Uber Eats partnership [53][54][56] Question: Customer behavior and value proposition - Management noted that customers are resilient and seeking value, with a strong value proposition across all income cohorts [63][64][66] Question: Relationship between shrink and inventory damages - Management highlighted that improvements in shrink are positively impacting damages, with expectations for continued improvement [100][101]

Financial Data and Key Metrics Changes - Net sales increased by 5.1% to $10.7 billion in Q2 compared to $10.2 billion in the same quarter last year, driven by strong performance from new stores and the mature store base [7] - Same store sales increased by 2.8%, with customer traffic growing by 1.5% and average basket size increasing by 1.2% [8] - Gross profit as a percentage of sales was 31.3%, an increase of 137 basis points, attributed to lower shrink, higher inventory markups, and lower inventory damages [17] - Operating profit for Q2 increased by 8.3% to $595 million, with operating profit margin increasing by 16 basis points to 5.6% [19] - EPS for the quarter increased by 9.4% to $1.86, exceeding internal expectations [20] Business Line Data and Key Metrics Changes - Positive comp sales were observed across all categories, including consumables, seasonal, home, and apparel [8] - The $1 value merchandising set, comprising over 500 rotating SKUs, showed same store sales growth more than twice the overall company rate [12] - Non-consumable categories experienced positive quarterly same store sales growth for the second consecutive quarter, with increases of at least 2.5% in each category [33] Market Data and Key Metrics Changes - Market share grew in both dollars and units in highly consumable product sales during the quarter [8] - Customers across all income brackets increased spending, with notable growth from middle and higher-income customers contributing to non-consumable category performance [10] Company Strategy and Development Direction - The company is focused on maintaining everyday low prices, with a commitment to keeping prices within three to four percentage points of mass retailers [11] - Strategic initiatives include expanding the real estate footprint, enhancing the mature store base, and improving digital capabilities through partnerships with DoorDash and Uber Eats [26][30] - The company plans to execute approximately 4,885 real estate projects in 2025, including 575 new store openings in the U.S. and up to 15 in Mexico [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for shrink reduction to contribute more than 80 basis points toward the operating margin goal of 6% to 7% [41] - The company raised its financial outlook for 2025, expecting net sales growth of approximately 4.3% to 4.8% and same store sales growth of approximately 2.1% to 2.6% [23] - Management acknowledged potential uncertainty in consumer behavior as the year progresses, particularly in Q4 [23] Other Important Information - The company generated cash flows from operations of $1.8 billion during the first half of the year, an increase of 9.8% compared to the prior year [21] - The company plans to redeem $600 million of senior notes in the third quarter, ahead of their April 2027 maturity [23] Q&A Session Summary Question: Expectations on shrink contributing to long-term financial framework - Management is optimistic about outperforming shrink expectations but maintains a target of 6% to 7% operating margin [41] Question: Gross margin expectations for Q3 - Management expects year-over-year improvement in gross margin but anticipates tougher comparisons in Q4 [46] Question: Insights on delivery partnerships with DoorDash and Uber - The DoorDash partnership has been successful, with a 60% year-over-year sales increase, and the Uber Eats partnership is expanding rapidly [56] Question: Customer behavior and value proposition - Management noted that customers are resilient and seeking value, with a strong value proposition across all income cohorts [64] Question: Relationship between shrink and inventory damages - Management indicated that improvements in shrink are also positively impacting inventory damages, with expectations for continued improvement [100]

Core Insights - Dollar General reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.56 per share, and showing an increase from $1.7 per share a year ago, resulting in an earnings surprise of +19.23% [1] - The company achieved revenues of $10.73 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 0.47% and up from $10.21 billion year-over-year [2] - Dollar General's stock has increased approximately 46.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 10.2% [3] Earnings Outlook - The future performance of Dollar General's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.90 on revenues of $10.59 billion, and for the current fiscal year, it is $5.77 on revenues of $42.41 billion [7] Industry Context - The Retail - Discount Stores industry, to which Dollar General belongs, is currently ranked in the top 45% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Dollar General (DG.US) unexpectedly raised its full-year sales and profit forecasts, driven by strong demand for discount essential goods amid inflation and tariff pressures [1][2] Company Performance - Dollar General's same-store sales increased by 2.8% in the second quarter of fiscal year 2026, surpassing Wall Street's expectation of 2.5% [2] - The adjusted earnings per share for the second quarter were $1.86, significantly higher than the expected $1.57 [2] - The company now expects net sales growth of 4.3% to 4.8% for fiscal year 2026, up from a previous forecast of 3.7% to 4.7% [3] Market Trends - Discount retailers are performing exceptionally well as more consumers focus on saving money, with Dollar General attracting higher-income customers seeking lower-priced products [2][4] - The overall retail sector shows optimism, with major players like Walmart also adjusting their sales forecasts upward [2] Consumer Behavior - There is a noticeable shift in consumer spending, with high-income consumers less affected by inflation and continuing to spend on non-essential items, while low-income consumers are cutting back on discretionary spending [4][5] - The demand for essential goods remains strong, with both high and low-income groups prioritizing purchases of food and daily necessities [5]

Core Viewpoint - Dollar General has raised its annual sales and profit forecasts, capitalizing on stable consumer demand across income levels amid tariff and inflation concerns in the U.S. market [1] Group 1: Company Performance - Dollar General's stock price rose approximately 6% in pre-market trading, with a year-to-date increase of nearly 47% [2] - The company reported a same-store sales growth of 2.8% year-on-year for the quarter ending August 1, surpassing the market expectation of 2.5% [3] - The adjusted earnings per share for the second quarter were $1.86, significantly higher than the market expectation of $1.57 [4] Group 2: Future Projections - Dollar General expects net sales growth to be between 4.3% and 4.8% for 2025, an increase from the previous forecast range of 3.7% to 4.7% [3] - The company anticipates annual earnings per share to reach between $5.80 and $6.30, up from the earlier target range of $5.20 to $5.80 [3] Group 3: Market Trends - Discount retailers like Dollar General tend to perform better during economic downturns as budget-conscious consumers shift to purchasing affordable essentials [2] - The trend of higher-income consumers shopping at discount stores is also observed, with Walmart attracting similar demographics [2]

[Cautionary Disclosure Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Disclosure%20Regarding%20Forward-Looking%20Statements) Outlines forward-looking statements and inherent risks that could cause actual results to differ materially [Forward-Looking Statements Overview](index=3&type=section&id=Forward-Looking%20Statements%20Overview) Identifies forward-looking statements, primarily in 'Management's Discussion and Analysis,' noting actual results may materially differ due to risks - Forward-looking statements are identified by words such as 'anticipate,' 'expect,' 'plan,' 'will,' and similar expressions, primarily found in 'Management's Discussion and Analysis' and 'Note 7. Commitments and Contingencies'[8](index=8&type=chunk) - Actual results may differ materially from expectations due to various risks, and the company does not undertake to update these statements[9](index=9&type=chunk)[15](index=15&type=chunk) [Risk Factors Affecting Forward-Looking Statements](index=3&type=section&id=Risk%20Factors%20Affecting%20Forward-Looking%20Statements) Forward-looking statements are subject to economic, operational, legal, and competitive risks that could cause actual results to vary significantly - Economic factors, including employment levels, inflation, higher fuel/energy/healthcare/housing/product costs, interest rates, consumer debt, and changes in government assistance programs, can significantly impact actual results[9](index=9&type=chunk)[12](index=12&type=chunk) - Operational risks include failure to achieve strategic initiatives (merchandising, real estate, digital), competitive pressures, inventory shrinkage and damages, supply chain disruptions, and IT system security failures[10](index=10&type=chunk)[12](index=12&type=chunk) - Legal and regulatory changes, including minimum wage increases, tax law changes, and outcomes of legal disputes, also pose significant risks[10](index=10&type=chunk)[14](index=14&type=chunk) [PART I—FINANCIAL INFORMATION](index=10&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) Presents the company's unaudited consolidated financial statements, management's discussion and analysis, and disclosures on market risk and controls [ITEM 1. FINANCIAL STATEMENTS](index=10&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS.) Presents unaudited consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flows, with detailed notes [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased by **$520.4 million** and shareholders' equity by **$598.4 million** as of August 1, 2025, driven by cash and property Consolidated Balance Sheets (in thousands) | Metric | August 1, 2025 (in thousands) | January 31, 2025 (in thousands) | Change (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Cash and cash equivalents | $1,284,567 | $932,576 | $351,991 | | Merchandise inventories | $6,609,690 | $6,711,242 | $(101,552) | | Total current assets | $8,398,679 | $8,163,925 | $234,754 | | Net property and equipment | $6,398,049 | $6,209,481 | $188,568 | | Total assets | $31,653,111 | $31,132,733 | $520,378 | | Current portion of long-term obligations | $19,326 | $519,463 | $(500,137) | | Total current liabilities | $6,701,666 | $6,868,702 | $(167,036) | | Total liabilities | $23,640,980 | $23,719,026 | $(78,046) | | Total shareholders' equity | $8,012,131 | $7,413,707 | $598,424 | [Consolidated Statements of Income](index=11&type=section&id=Consolidated%20Statements%20of%20Income) Net sales increased by **5.1%** to **$10.73 billion** for 13 weeks and **5.2%** to **$21.16 billion** for 26 weeks, with corresponding net income and EPS growth Consolidated Statements of Income (in thousands, except per share) | Metric (in thousands, except per share) | 13 Weeks Ended Aug 1, 2025 | 13 Weeks Ended Aug 2, 2024 | % Change (13 Weeks) | | :-------------------------------------- | :------------------------- | :------------------------- | :------------------ | | Net sales | $10,727,737 | $10,210,361 | 5.1% | | Gross profit | $3,361,668 | $3,059,479 | 9.9% | | Operating profit | $595,428 | $549,962 | 8.3% | | Net income | $411,426 | $374,190 | 10.0% | | Diluted EPS | $1.86 | $1.70 | 9.4% | | Metric (in thousands, except per share) | 26 Weeks Ended Aug 1, 2025 | 26 Weeks Ended Aug 2, 2024 | % Change (26 Weeks) | | :-------------------------------------- | :------------------------- | :------------------------- | :------------------ | | Net sales | $21,163,716 | $20,124,382 | 5.2% | | Gross profit | $6,592,956 | $6,051,628 | 8.9% | | Operating profit | $1,171,541 | $1,096,066 | 6.9% | | Net income | $803,354 | $737,507 | 8.9% | | Diluted EPS | $3.64 | $3.35 | 8.7% | [Consolidated Statements of Comprehensive Income](index=12&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income increased by **9.8%** to **$413.0 million** for 13 weeks and **9.1%** to **$806.7 million** for 26 weeks, driven by net income and other gains Consolidated Statements of Comprehensive Income (in thousands) | Metric (in thousands) | 13 Weeks Ended Aug 1, 2025 | 13 Weeks Ended Aug 2, 2024 | % Change (13 Weeks) | | :-------------------- | :------------------------- | :------------------------- | :------------------ | | Net income | $411,426 | $374,190 | 10.0% | | Comprehensive income | $412,987 | $376,062 | 9.8% | | Metric (in thousands) | 26 Weeks Ended Aug 1, 2025 | 26 Weeks Ended Aug 2, 2024 | % Change (26 Weeks) | | :-------------------- | :------------------------- | :------------------------- | :------------------ | | Net income | $803,354 | $737,507 | 8.9% | | Comprehensive income | $806,701 | $739,299 | 9.1% | [Consolidated Statements of Shareholders' Equity](index=13&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Total shareholders' equity increased to **$8.01 billion** by August 1, 2025, primarily due to net income, partially offset by dividends Consolidated Statements of Shareholders' Equity (in thousands) | Metric (in thousands) | January 31, 2025 | August 1, 2025 | | :-------------------- | :--------------- | :------------- | | Total Shareholders' Equity | $7,413,707 | $8,012,131 | **Key Changes (26 Weeks Ended August 1, 2025):** * Net income: **$803,354 thousand** * Dividends paid: **$(259,731) thousand** * Share-based compensation expense: **$52,977 thousand** [Consolidated Statement of Cash Flows](index=14&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Operating cash flow increased by **$162.1 million** to **$1.81 billion**, while financing cash flow significantly increased due to debt repayments Consolidated Statement of Cash Flows (in thousands) | Metric (in thousands) | 26 Weeks Ended Aug 1, 2025 | 26 Weeks Ended Aug 2, 2024 | Change (in thousands) | | :-------------------- | :------------------------- | :------------------------- | :-------------------- | | Net cash from operating activities | $1,814,855 | $1,652,729 | $162,126 | | Net cash from investing activities | $(691,494) | $(694,158) | $2,664 | | Net cash from financing activities | $(771,370) | $(273,163) | $(498,207) | | Net increase in cash and cash equivalents | $351,991 | $685,408 | $(333,417) | | Cash and cash equivalents, end of period | $1,284,567 | $1,222,691 | $61,876 | - Repayments of long-term obligations significantly increased cash used in financing activities, totaling **$509.6 million** in the 2025 period compared to **$10.3 million** in the 2024 period[30](index=30&type=chunk)[136](index=136&type=chunk) [Notes to Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, EPS, income taxes, leases, debt, fair value, legal matters, segment reporting, and common stock transactions [1. Basis of presentation](index=15&type=section&id=1.%20Basis%20of%20presentation) Interim financial statements follow U.S. GAAP, with LIFO calculations based on estimates and a **$74.6 million** provision for 26 weeks - Interim LIFO calculations are based on management's estimates and are subject to adjustment at year-end[36](index=36&type=chunk) LIFO Provision (in millions) | Period | LIFO Provision (in millions) | | :----- | :--------------------------- | | 13-week ended Aug 1, 2025 | $62.3 | | 13-week ended Aug 2, 2024 | $10.5 | | 26-week ended Aug 1, 2025 | $74.6 | | 26-week ended Aug 2, 2024 | $20.8 | - The company uses supply chain finance programs, with **$317.1 million** in outstanding obligations as of August 1, 2025[37](index=37&type=chunk) [2. Earnings per share](index=17&type=section&id=2.%20Earnings%20per%20share) Diluted EPS was **$1.86** for 13 weeks and **$3.64** for 26 weeks, calculated based on weighted average common shares outstanding Earnings per share | Metric | 13 Weeks Ended Aug 1, 2025 | 13 Weeks Ended Aug 2, 2024 | | :----- | :------------------------- | :------------------------- | | Basic EPS | $1.87 | $1.70 | | Diluted EPS | $1.86 | $1.70 | | Metric | 26 Weeks Ended Aug 1, 2025 | 26 Weeks Ended Aug 2, 2024 | | :----- | :------------------------- | :------------------------- | | Basic EPS | $3.65 | $3.35 | | Diluted EPS | $3.64 | $3.35 | [3. Income taxes](index=17&type=section&id=3.%20Income%20taxes) The effective income tax rate increased to **23.4%** for 26 weeks due to Pillar Two minimum tax, with U.S. cash taxes expected to decrease Effective Income Tax Rate | Period | Effective Income Tax Rate (2025) | Effective Income Tax Rate (2024) | | :----- | :------------------------------- | :------------------------------- | | 13-week ended Aug 1 | 23.5% | 22.3% | | 26-week ended Aug 1 | 23.4% | 22.8% | - The increase in the effective income tax rate is primarily due to the enactment of the Pillar Two minimum tax in a certain jurisdiction[49](index=49&type=chunk) - The One Big Beautiful Bill Act (OBBBA) is expected to significantly decrease U.S. cash taxes in 2025, with no material impact on the effective tax rate[50](index=50&type=chunk) [4. Leases](index=19&type=section&id=4.%20Leases) Operating lease costs for 26 weeks were **$983.1 million**, with a weighted-average remaining lease term of **9.3 years** Operating Lease Costs (in millions) | Metric | 26 Weeks Ended Aug 1, 2025 (in millions) | 26 Weeks Ended Aug 2, 2024 (in millions) | | :----- | :--------------------------------------- | :--------------------------------------- | | Operating lease costs | $983.1 | $929.2 | - As of August 1, 2025, the weighted-average remaining lease term for operating leases was **9.3 years**, and the weighted average discount rate was **4.6%**[51](index=51&type=chunk) [5. Current and long-term obligations](index=20&type=section&id=5.%20Current%20and%20long-term%20obligations) Total debt was **$5.75 billion** as of August 1, 2025, with **$500 million** in senior notes redeemed and **$600 million** planned for redemption Current and Long-Term Obligations (in thousands) | Metric (in thousands) | August 1, 2025 | January 31, 2025 | | :-------------------- | :------------- | :--------------- | | Total Debt | $5,745,102 | $6,238,488 | | Less: current portion | $(19,326) | $(519,463) | | Long-term obligations | $5,725,776 | $5,719,025 | - The company has a **$2.375 billion** unsecured five-year revolving credit facility, maturing September 3, 2029, with no outstanding borrowings as of August 1, 2025[54](index=54&type=chunk)[57](index=57&type=chunk) - In April 2025, the company redeemed **$500.0 million** of 4.15% senior notes and plans to redeem **$600.0 million** of 3.875% senior notes in the third quarter of 2025[59](index=59&type=chunk)[124](index=124&type=chunk) [6. Assets and liabilities measured at fair value](index=22&type=section&id=6.%20Assets%20and%20liabilities%20measured%20at%20fair%20value) Liabilities measured at fair value, primarily debt and deferred compensation, are classified within Level 1 and Level 2 Fair Value Measurements at August 1, 2025 (in thousands) | Liabilities (in thousands) | Level 1 (Quoted Prices in Active Markets) | Level 2 (Significant Other Observable Inputs) | Total Fair Value at August 1, 2025 | | :------------------------- | :---------------------------------------- | :-------------------------------------------- | :--------------------------------- | | Current and long-term obligations | $5,499,954 | $171,551 | $5,671,505 | | Deferred compensation | $51,644 | — | $51,644 | - The company does not have any fair value measurements categorized within Level 3 as of August 1, 2025[60](index=60&type=chunk) [7. Commitments and contingencies](index=23&type=section&id=7.%20Commitments%20and%20contingencies) The company faces shareholder class action and derivative lawsuits, with outcomes uncertain but not expected to materially affect financial statements - The company is a party to shareholder class action lawsuits (e.g., Washtenaw County) and derivative actions (e.g., Silva, Dunn, Caliguiri) alleging federal securities law violations and breach of fiduciary duties[65](index=65&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - The court granted defendants' motion to dismiss the second consolidated amended complaint in the Shareholder Securities Litigation without prejudice on June 23, 2025[65](index=65&type=chunk) - While the company believes pending legal matters will be resolved without a material adverse effect, adverse decisions or settlements could materially affect future operating results or financial statements[66](index=66&type=chunk)[70](index=70&type=chunk) [8. Segment reporting](index=25&type=section&id=8.%20Segment%20reporting) The company operates as one segment, with consumables accounting for **82.49%** of net sales for the 26 weeks ended August 1, 2025 - The company manages its business as one reportable operating segment, primarily within the United States[71](index=71&type=chunk) Net Sales by Product Category | Product Category | 13 Weeks Ended Aug 1, 2025 (% of Net Sales) | 13 Weeks Ended Aug 2, 2024 (% of Net Sales) | | :--------------- | :---------------------------------------- | :---------------------------------------- | | Consumables | 82.22% | 82.25% | | Seasonal | 10.31% | 10.33% | | Home products | 4.77% | 4.70% | | Apparel | 2.70% | 2.72% | | Product Category | 26 Weeks Ended Aug 1, 2025 (% of Net Sales) | 26 Weeks Ended Aug 2, 2024 (% of Net Sales) | | :--------------- | :---------------------------------------- | :---------------------------------------- | | Consumables | 82.49% | 82.52% | | Seasonal | 10.06% | 10.03% | | Home products | 4.81% | 4.77% | | Apparel | 2.64% | 2.68% | [9. Common stock transactions](index=26&type=section&id=9.%20Common%20stock%20transactions) **$1.38 billion** remains for share repurchases, but none are planned for 2025 to maintain credit rating, while **$0.59** quarterly dividends were paid - As of August 1, 2025, the company had approximately **$1.38 billion** available under its common stock repurchase program[75](index=75&type=chunk) - No shares were repurchased during the 26-week periods ended August 1, 2025, and August 2, 2024, and no repurchases are planned for the remainder of 2025 to maintain credit rating and financial flexibility[76](index=76&type=chunk)[138](index=138&type=chunk) - The company paid a quarterly cash dividend of **$0.59 per share** for the first two quarters of 2025 and declared another **$0.59 dividend** payable in October 2025[77](index=77&type=chunk) [Report of Independent Registered Public Accounting Firm](index=27&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP found no material modifications needed for interim financial statements to conform with U.S. GAAP - Ernst & Young LLP reviewed the interim financial statements and found no material modifications needed for conformity with U.S. GAAP[79](index=79&type=chunk) - The firm confirmed that the consolidated balance sheet as of January 31, 2025, is fairly stated in relation to the previously audited annual financial statements[80](index=80&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=28&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) Management discusses financial condition, operating results, key performance indicators, liquidity, capital resources, and strategic outlook [General](index=28&type=section&id=General) This section introduces the Management's Discussion and Analysis, to be read with financial statements and forward-looking statements disclosure - The discussion and analysis should be read with the unaudited consolidated financial statements and the cautionary disclosure regarding forward-looking statements[83](index=83&type=chunk) [Executive Overview](index=28&type=section&id=Executive%20Overview) Dollar General, a leading discount retailer, addresses macroeconomic pressures through strategic growth, operational efficiency, and employee development, showing progress in reducing inventory shrink - Dollar General is the largest discount retailer in the U.S. with **20,746 stores** in 48 states and Mexico as of August 1, 2025[84](index=84&type=chunk) - Key macroeconomic factors affecting customers include unemployment, inflation, wage growth, tax policies, interest rates, and government assistance programs. The reinstatement of defaulted student loan collections in May 2025 adds uncertainty[85](index=85&type=chunk) - The company's long-term operating priorities are: 1) driving profitable sales growth, 2) capturing growth opportunities, 3) enhancing its position as a low-cost operator, and 4) investing in team development[88](index=88&type=chunk) - The company is expanding digital initiatives (Dollar General app, third-party delivery, DG Media Network) and store remodels (Project Elevate, Project Renovate) to drive growth and enhance customer experience[93](index=93&type=chunk)[94](index=94&type=chunk) - In 2025, plans include opening approximately **575 new stores** (plus up to 15 in Mexico), remodeling **2,000 stores** via Project Renovate, **2,250** via Project Elevate, and relocating **45 stores**, totaling **4,885 real estate projects**[95](index=95&type=chunk) - The company has made progress in reducing inventory shrink for four consecutive quarters and saw improvement in damages during the first two quarters of 2025[92](index=92&type=chunk) [Key Performance Indicators](index=32&type=section&id=Key%20Performance%20Indicators) Key performance indicators show same-store sales growth of **2.6%** for 26 weeks, with improved average sales per square foot and inventory turnover Same-Store Sales | Metric | 13 Weeks Ended Aug 1, 2025 | 13 Weeks Ended Aug 2, 2024 | | :----- | :------------------------- | :------------------------- | | Same-store sales | 2.8% | 0.5% | | Metric | 26 Weeks Ended Aug 1, 2025 | 26 Weeks Ended Aug 2, 2024 | | :----- | :------------------------- | :------------------------- | | Same-store sales | 2.6% | 1.4% | Other Key Performance Indicators | Metric | August 1, 2025 | August 2, 2024 | | :----- | :------------- | :------------- | | Average sales per square foot | $266 | $263 | | Inventory turnover | 4.3 | 3.9 | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Net sales increased by **5.2%** for 26 weeks, driven by new stores and same-store sales, with improved gross profit rates and increased SG&A expenses Results of Operations Summary | Metric | 13 Weeks Ended Aug 1, 2025 | 13 Weeks Ended Aug 2, 2024 | % Change (13 Weeks) | Basis Point Change (13 Weeks) | | :-------------------------------------- | :------------------------- | :------------------------- | :------------------ | :---------------------------- | | Net sales (in millions) | $10,727.7 | $10,210.4 | 5.1% | | | Gross profit (% of net sales) | 31.34% | 29.96% | | 137 | | SG&A expenses (% of net sales) | 25.79% | 24.58% | | 121 | | Operating profit (% of net sales) | 5.55% | 5.39% | | 16 | | Net income (in millions) | $411.4 | $374.2 | 10.0% | | | Diluted EPS | $1.86 | $1.70 | 9.4% | | | Metric | 26 Weeks Ended Aug 1, 2025 | 26 Weeks Ended Aug 2, 2024 | % Change (26 Weeks) | Basis Point Change (26 Weeks) | | :-------------------------------------- | :------------------------- | :------------------------- | :------------------ | :---------------------------- | | Net sales (in millions) | $21,163.7 | $20,124.4 | 5.2% | | | Gross profit (% of net sales) | 31.15% | 30.07% | | 108 | | SG&A expenses (% of net sales) | 25.62% | 24.62% | | 99 | | Operating profit (% of net sales) | 5.54% | 5.45% | | 9 | | Net income (in millions) | $803.4 | $737.5 | 8.9% | | | Diluted EPS | $3.64 | $3.35 | 8.7% | | - The increase in same-store sales for the 13-week period was driven by a **1.5% increase in customer traffic** and a **1.2% increase in average transaction amount**[113](index=113&type=chunk) - Gross profit rate increase was primarily due to lower shrink, higher inventory markups, and lower inventory damages, partially offset by an increased LIFO provision and increased markdowns[114](index=114&type=chunk)[118](index=118&type=chunk) - SG&A expenses increased as a percentage of net sales primarily due to higher incentive compensation, repairs and maintenance, and benefits (13 weeks) and retail labor (26 weeks)[115](index=115&type=chunk)[119](index=119&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity, plans **$1.3-1.4 billion** in capital expenditures for 2025, and manages debt redemptions while monitoring credit ratings - The company expects sufficient liquidity from cash flow, existing cash, and credit facilities to fund operations, capital spending, and dividends for the next several years[121](index=121&type=chunk)[123](index=123&type=chunk) - Capital expenditures for 2025 are projected to be approximately **$1.3 billion to $1.4 billion**, supporting new store growth, remodels, supply chain, and technology initiatives[135](index=135&type=chunk) Credit Ratings | Rating Agency | Senior unsecured debt rating | Commercial paper rating | Outlook | | :------------ | :--------------------------- | :---------------------- | :------------ | | Moody's | Baa3 | P-3 | Stable outlook| | Standard & Poor's | BBB | A-2 | Negative outlook| [Current Financial Condition / Recent Developments](index=38&type=section&id=Current%20Financial%20Condition%20%2F%20Recent%20Developments) Inventory represents **45%** of total assets, with credit ratings from Moody's (stable) and S&P (negative) impacting financing costs - Inventory balance represented approximately **45%** of total assets (excluding operating lease assets, goodwill, and other intangible assets) as of August 1, 2025[126](index=126&type=chunk) - Credit ratings impact financing costs and insurance premiums; maintaining or improving ratings is important[128](index=128&type=chunk) [Changes in Cash Flows](index=38&type=section&id=Changes%20in%20Cash%20Flows) Operating cash flow increased by **$162.1 million**, while financing cash flow increased due to debt repayments, and merchandise inventories decreased by **7.4%** per store Cash Flow Activity (26 Weeks, in millions) | Cash Flow Activity (26 Weeks) | 2025 (in millions) | 2024 (in millions) | Change (in millions) | | :---------------------------- | :----------------- | :----------------- | :------------------- | | Operating activities | $1,814.9 | $1,652.7 | $162.2 | | Investing activities | $(691.5) | $(694.2) | $2.7 | | Financing activities | $(771.4) | $(273.2) | $(498.2) | - Merchandise inventories decreased **2%** in the 2025 period compared to flat in the 2024 period. On a per-store basis, inventories decreased by **7.4%** at August 1, 2025, compared to August 2, 2024[132](index=132&type=chunk) Property and Equipment Purchases (26 Weeks, in millions) | Property and Equipment Purchases (26 Weeks, in millions) | 2025 | 2024 | | :------------------------------------------------------- | :----- | :----- | | Existing stores improvements, upgrades, remodels, and relocations | $365.4 | $255.0 | | Distribution and transportation-related capital expenditures | $151.1 | $198.7 | | New stores primarily for leasehold improvements, fixtures and equipment | $142.8 | $216.1 | | Information systems upgrades and technology-related projects | $32.2 | $19.6 | [Share Repurchase Program](index=40&type=section&id=Share%20Repurchase%20Program) **$1.38 billion** remains for share repurchases, but none are planned for 2025 to preserve the investment-grade credit rating and financial flexibility - Approximately **$1.38 billion** remains authorized under the common stock repurchase program as of August 1, 2025[137](index=137&type=chunk) - No shares were repurchased in the first quarter of 2025, and no repurchases are planned for the remainder of the year to preserve the investment-grade credit rating and financial flexibility[138](index=138&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=42&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK.) No material changes to quantitative and qualitative market risk disclosures have occurred since the prior annual report - No material changes to market risk disclosures since the Annual Report on Form 10-K for the fiscal year ended January 31, 2025[139](index=139&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=42&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES.) Disclosure controls and procedures were effective as of August 1, 2025, with no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of August 1, 2025[140](index=140&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended August 1, 2025[141](index=141&type=chunk) [PART II—OTHER INFORMATION](index=43&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) Includes disclosures on legal proceedings, risk factors, other information, and a list of exhibits filed with the Form 10-Q [ITEM 1. LEGAL PROCEEDINGS](index=43&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS.) Legal proceedings disclosures, including shareholder class action and derivative lawsuits, are incorporated by reference from Note 7 - Legal proceedings information is incorporated by reference from Note 7 to the unaudited consolidated financial statements[144](index=144&type=chunk) [ITEM 1A. RISK FACTORS](index=43&type=section&id=ITEM%201A.%20RISK%20FACTORS.) No material changes to risk factors from the Annual Report on Form 10-K, except as noted in the 'Executive Overview' - No material changes to risk factors from the Annual Report on Form 10-K, except as noted in the 'Executive Overview' of this Form 10-Q[145](index=145&type=chunk) [ITEM 5. OTHER INFORMATION](index=43&type=section&id=ITEM%205.%20OTHER%20INFORMATION.) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended August 1, 2025[146](index=146&type=chunk) [ITEM 6. EXHIBITS](index=43&type=section&id=ITEM%206.%20EXHIBITS.) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and certifications - The exhibit index includes corporate governance documents, compensation agreements, certifications, and interactive data files in Inline XBRL format[147](index=147&type=chunk)[150](index=150&type=chunk) [Signature](index=45&type=section&id=Signature) This section contains the official signature confirming the submission of the report [Signature](index=45&type=section&id=Signature) The report was signed by Kelly M. Dilts, Executive Vice President & Chief Financial Officer, on August 28, 2025 - The report was signed by Kelly M. Dilts, Executive Vice President & Chief Financial Officer, on August 28, 2025[154](index=154&type=chunk)

Exhibit 99 Dollar General Corporation Reports Second Quarter 2025 Results Interest expense for the second quarter of 2025 decreased 15.3% to $57.7 million compared to $68.1 million in the second quarter of 2024. The effective income tax rate in the second quarter of 2025 was 23.5% compared to 22.3% in the second quarter of 2024. Raises Financial Guidance for Fiscal Year 2025 GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Dollar General Corporation (NYSE: DG) today reported financial results for its fiscal year 202 ...

Nanterre, August 25th, 2025 Disclosure of transactions in on shares from August 18th to August 22nd,2025 Within the framework of the authorization granted by the General Meeting of VINCI SA of April 17th, 2025, to trade in its shares and in accordance with the regulations relating to share buybacks, VINCI SA (LEI:213800WFQ334R8UXUG83) declares the purchases of treasury shares below (FR0000125486), carried out from August 18th to August 22nd ,2025: I - Aggregate presentation by day and by market Issuer’s ...

Core Viewpoint - Dollar General is expected to report quarterly earnings of $1.56 per share, reflecting an 8.2% decline year-over-year, while revenues are forecasted to increase by 4.5% to $10.67 billion [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.1%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Net Sales by Category- Consumables' to reach $8.78 billion, marking a year-over-year increase of 4.5% [5]. - 'Net Sales by Category- Seasonal' is estimated at $1.10 billion, indicating a 4% year-over-year change [5]. - 'Net Sales by Category- Home products' is expected to be $496.33 million, reflecting a 3.4% increase from the previous year [5]. - 'Net Sales by Category- Apparel' is forecasted at $286.10 million, showing a 2.9% year-over-year change [6]. Store Metrics - The consensus for 'Ending store count' is 20,746, up from 20,345 a year ago [6]. - 'Total selling square footage' is expected to reach 158 million square feet, compared to 154 million square feet reported in the same quarter last year [7]. - Analysts predict 'New store openings' to be 179, down from 213 in the same quarter last year [7]. - 'Store closings' are anticipated to reach 18, compared to 17 reported in the same quarter last year [8]. Sales Performance - The combined estimate for 'Net sales per square foot' is projected at $67.63, an increase from $66.10 in the same quarter of the previous year [8]. - Dollar General shares have increased by 4.5% over the past month, outperforming the Zacks S&P 500 composite, which moved up by 2.7% [8].