Dollar General closed hundreds of locations after evaluating its store footprint. But there's an upside

"Shares of Dollar General Corp (NYSE: DG) fell more than 6% in premarket trading on Thursday following the report's early-morning release. And yet the discount retailer's financial results include figures such as a 5.9% increase year-over-year (YOY) in quarter-four, with net sales increasing to $10.9 billion."

"Notably, Dollar General did predict slower growth for 2026. It expects net sales to increase between 3.7% and 4.2% over the year, while it estimates same store sales to grow 2.2% to 2.7%."

"The 2025 report is free of one ominous announcement that loomed over last year's results: additional store closures. In its fiscal 2024 fourth-quarter report, Dollar General announced that it would shutter 96 of its namesake stores and 45 PopShelf locations, a retail chain the company owns."

Dollar General's fourth-quarter and full-year 2025 earnings demonstrated solid financial performance despite negative stock market reaction. Net sales reached $10.9 billion in Q4, representing 5.9% year-over-year growth, while full-year 2025 net sales totaled $42.7 billion with 5.2% growth. Same-store sales increased 4.3% in Q4 and 3% for the full year. However, the company projected slower growth for 2026, forecasting net sales increases between 3.7-4.2% and same-store sales growth of 2.2-2.7%. The 2025 report notably avoided announcements of additional store closures, contrasting with fiscal 2024 when the company announced closures of 96 Dollar General stores and 45 PopShelf locations.

Read at Fast Company