On August 27, Dollar General rose 5.87% in regular trading, trading at $128.945/share, with turnover of $130 million. The rally was driven by a strong fiscal Q2 earnings report that significantly exceeded market expectations, coupled with a substantial upward revision to full-year guidance.

Dollar General posted fiscal Q2 EPS of $2.48, beating the FactSet consensus estimate of $2.01 by 23.38% and representing a 33.33% year-over-year increase from $1.86. Net sales reached $11.29 billion versus the expected $11.2 billion, while same-store sales grew 3.5%. The company raised its fiscal 2026 EPS guidance to $7.80-$8.00, well above its prior range of $7.20-$7.45 and the analyst estimate of $7.39. Full-year net sales growth is now projected at 4%-4.3%, up from the previous 3.7%-4.2% forecast.

Additionally, the CFO announced plans to restart share buybacks in Q3, targeting up to $700 million in repurchases during the second half. However, management cautioned that elevated fuel costs experienced in Q2 are expected to persist for an uncertain duration, potentially pressuring margins ahead. Oppenheimer raised its price target to $160 from $150 following the results.

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