Dollar Gen Corp New — Income Statement, Cash Flows & Balance Sheet
Is Dollar General profitable?
Dollar General's profitability bounced back strongly in fiscal 2025 after a difficult prior year.
| Metric | FY2024 (Jan 31, 2025) | FY2025 (Jan 30, 2026) | Change |
|---|---|---|---|
| Net sales | $40.6B | $42.7B | +5.2% |
| Gross profit margin | 29.6% | 30.7% | +1.1 pp |
| Operating profit | $1.71B | $2.20B | +28.6% |
| Net income | $1.13B | $1.51B | +34.4% |
| Diluted EPS | $5.11 | $6.85 | +34.1% |
Net income surged by about a third, with both top-line growth and improved margins driving the recovery. The prior year (FY2024) had been weighed down by roughly $214 million in store closure and impairment charges related to a portfolio review — with those largely behind it, Dollar General's underlying earnings power showed through more clearly in FY2025.
Selling costs are growing fast and remain the main drag on margins.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| SG&A expenses | $10.30B | $10.90B | +5.8% |
| SG&A as % of net sales | 25.4% | 25.5% | +0.1 pp |
| Impairment charges in SG&A | $226.7M | $57.1M | -$169.6M |
SG&A expenses grew slightly faster than sales, though a large chunk of the prior year's SG&A was the one-time impairment wave. Stripping those out, underlying operating cost pressure is a trend worth watching as Dollar General continues to invest in its store base.
Where does Dollar General's revenue come from?
Consumables — everyday essentials like food and household products — dominate sales and are growing fastest.
| Product Category | FY2024 | FY2025 | Change |
|---|---|---|---|
| Consumables | $33.4B | $35.1B | +5.0% |
| Seasonal | $4.1B | $4.3B | +6.2% |
| Home products | $2.1B | $2.2B | +6.7% |
| Apparel | $1.1B | $1.1B | +3.4% |
| Total net sales | $40.6B | $42.7B | +5.2% |
Consumables make up roughly 82% of Dollar General's total sales, underscoring the company's identity as a destination for everyday necessities. All four categories grew in FY2025, a healthier picture than FY2024 when seasonal and apparel were essentially flat.
Does Dollar General generate cash?
Dollar General is a strong cash generator, and free cash flow (operating cash minus capital spending) improved substantially.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Operating cash flow | $3.00B | $3.63B | +21.3% |
| Capital expenditures | $1.31B | $1.24B | -5.3% |
| Free cash flow (GAAP) | $1.69B | $2.39B | +41.4% |
| Dividends paid | $519M | $520M | ~flat |
Operating cash flow rose sharply, while the company simultaneously pulled back on capital spending — a sign of a more disciplined investment posture after several years of aggressive store expansion. After paying dividends, the company had substantial remaining free cash to pay down debt.
How strong is Dollar General's balance sheet?
Dollar General aggressively paid down debt in FY2025, meaningfully reducing its interest burden.
| Metric | FY2024 (Jan 31, 2025) | FY2025 (Jan 30, 2026) | Change |
|---|---|---|---|
| Total long-term debt (incl. current) | $6.24B | $4.58B | -$1.66B |
| Interest expense, net | $274M | $231M | -15.8% |
| Cash and equivalents | $933M | $1.14B | +22.1% |
Dollar General retired over $1.6 billion in debt during the year — paying off three separate senior note series early — and ended the year with more cash on hand. The company also has a $2.375 billion revolving credit line (a backup borrowing facility) that was completely undrawn.
Lease obligations are large but manageable, and equity is building.
| Metric | FY2024 (Jan 31, 2025) | FY2025 (Jan 30, 2026) | Change |
|---|---|---|---|
| Operating lease liabilities (total) | $11.22B | $11.14B | -0.7% |
| Total shareholders' equity | $7.41B | $8.51B | +14.8% |
Because Dollar General leases almost all of its roughly 20,900 stores, its balance sheet carries significant lease obligations — these are real, ongoing cash commitments averaging about $2 billion per year. That said, shareholders' equity grew by over $1 billion as strong earnings outpaced dividends, pointing to a strengthening financial foundation.