Dollar General Corporation (NYSE: DG) reported financial results for its fiscal year 2025 second quarter (13 weeks) ended August 1, 2025.
Net sales increased 5.1% to $10.7 billion in the second quarter of 2025 compared to $10.2 billion in the second quarter of 2024. The net sales increase was driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures. Same-store sales increased 2.8% compared to the second quarter of 2024, reflecting a 1.5% increase in customer traffic and a 1.2% increase in average transaction amount. Same-store sales in the second quarter of 2025 included growth in each of the consumables, seasonal, home products, and apparel categories.
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Gross profit as a percentage of net sales was 31.3% in the second quarter of 2025 compared to 30.0% in the second quarter of 2024, an increase of 137 basis points. This gross profit rate increase was driven primarily by lower shrink, higher inventory markups, and lower inventory damages; partially offset by an increased LIFO provision, increased markdowns, and increased distribution costs.
Selling, General and Administrative Expenses (“SG&A”) as a percentage of net sales were 25.8% in the second quarter of 2025 compared to 24.6% in the second quarter of 2024, an increase of 121 basis points. The primary expenses that were a higher percentage of net sales in the second quarter of 2025 were incentive compensation, repairs and maintenance, and benefits.
Operating profit for the second quarter of 2025 increased 8.3% to $595.4 million compared to $550.0 million in the second quarter of 2024.
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.
The Company reported net income of $411.4 million for the second quarter of 2025, an increase of 10.0% compared to $374.2 million in the second quarter of 2024. Diluted EPS increased 9.4% to $1.86 for the second quarter of 2025 compared to diluted EPS of $1.70 in the second quarter of 2024.
