Dollar General reported Q3 earnings of $1.28 per share against estimates of $0.94, a $0.34 surprise marking its fourth consecutive quarterly beat. Revenue of $10.65 billion edged past the $10.60 billion consensus despite 4.6% year-over-year growth. Gross margin climbed 110 basis points to 29.9% from higher inventory markups and lower shrink. Operating income jumped 31.5% to $425.9 million. CEO Todd Vasos announced 4,885 real estate projects planned for fiscal 2026. Same-store sales rose 2.5%, driven by pricing power and a shift toward higher-margin categories.
Something unusual is happening at Dollar Tree: The discount retailer said this week that of the 3 million new households that shopped its stores in the third quarter, approximately 60% of those new customers came from households earning more than $100,000 a year. The trend underscores a deepening split in the American economy. While cumulative inflation has pushed prices up roughly 25% since 2020, wage growth has not kept pace for most households, leaving consumers across the income spectrum hunting for deals.