DG Stock: EPS +13.5% YoY Q1 FY2026

Dollar General Corporation Q1 FY2026 earnings breakdown - conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. THE CALL: HOLD (3/5 conviction, MODERATE) - CURRENT @ $107.02 -> HOLD - BUY below $95.00 with $78.00 stop - AVOID above $130.00 TRIGGER: Two consecutive quarters of comp acceleration above +2.5%, or SNAP/tariff clarity removing the macro overhang WINDOW: Through Q3 FY2026 earnings (December 2026) WALL STREET CONSENSUS - Ratings: 1 Strong Buy / 26 Buy / 20 Hold / 3 Sell / 0 Strong Sell -> BUY - Median 12-month PT: $125.00 (range $90 - $155) THESIS Dollar General is the largest deep-discount retailer in the US with nearly 20,000 stores serving the under-served rural and lower-income consumer who needs staples at the lowest possible price. Bull lever: EPS of $2.02 grew 13.5% year over year as gross margin expanded to 31.6%, the best Q1 reading in two years, confirming the Back-to-Basics operational turnaround under CEO Todd Vasos is gaining real traction. Key risk: Dollar General's core customer earns under $40,000 per year and relies heavily on SNAP benefits -- any reduction in those benefits or continued tariff-driven consumable cost inflation could reverse the margin recovery. KEY METRICS - Q1 FY2026 - Net sales: $10.79B (+3% YoY) - Comparable store sales: +2% - Adjusted EPS: $2.02 (vs $1.88 est, +7% beat); +14% YoY - Gross margin: 31.6% (+60 bps) - FY26 guide RAISED: sales +9-11%, comp +2-4%, adj EPS $11.45-$11.80 - Stock reaction: fell 2.6% on the print despite the beat-and-raise DISCLAIMER This is for informational and educational purposes only. Not financial advice. Charged Alpha does not have a position in BURL. #BURL #Dollar General #offprice #retail #earnings #investing #stocks #ChargedAlpha #TJX #ROST