DOLLAR GENERAL CORP

Previous wording

We are the largest discount retailer in the United States by number of stores, with 20,746 stores located in 48 U.S. states and Mexico as of August 1, 2025, with the greatest concentration of stores in the southern, southwestern, midwestern and eastern United States. We offer a broad selection of merchandise, including consumable products such as food, paper and cleaning products, health and beauty products and pet supplies, and non-consumable products such as seasonal merchandise, home decor and domestics, and basic apparel. Our merchandise includes national brands from leading manufacturers, as well as our own private brand selections with prices often at substantial discounts to national brands. We offer our customers these national brand and private brand products at everyday low prices (typically $10 or less) in our convenient small-box locations.

Current wording

We are the largest discount retailer in the United States by number of stores, with 20,901 stores located in 48 U.S. states and Mexico as of October 31, 2025, with the greatest concentration of stores in the southern, southwestern, midwestern and eastern United States. We offer a broad selection of merchandise, including consumable products such as food, paper and cleaning products, health and beauty products and pet supplies, and non-consumable products such as seasonal merchandise, home decor and domestics, and basic apparel. Our merchandise includes national brands from leading manufacturers, as well as our own private brand selections with prices often at substantial discounts to national brands. We offer our customers these national brand and private brand products at everyday low prices (typically $10 or less) from our convenient small-box locations.

Previous wording

Uncertainty remains regarding the potential impact of tariffs on consumer behavior and our business. Tariff rates on both direct imports and domestic purchases did not materially impact our financial results for the first two quarters of 2025. Currently announced tariff rates, including those that have been announced but delayed, as well as any increases or expansions of tariff coverage affecting the products that we sell, could have a more significant impact on our business and on our customers’ budgets. However, the tariff environment remains dynamic, and the specific tariffs applicable to goods imported by us and our suppliers into the U.S. may continue to evolve. We continue to monitor developments and to evaluate and implement mitigation strategies to address the potential sales and margin impact of current and potential future tariffs, as well as to take various actions designed to minimize price increases for our customers. There can be no assurance we will be successful in our efforts, or that price increases will not adversely affect customer behavior.

Current wording

Uncertainty remains regarding the potential impact of tariffs on consumer behavior and our business. Tariff rates on both direct imports and domestic purchases did not materially impact our financial results for the first three quarters of 2025. Currently announced tariff rates, as well as any increases or expansions of tariff coverage affecting the products that we sell, could have a more significant impact on our business and on our customers’ budgets. However, the tariff environment remains dynamic, and the specific tariffs applicable to goods imported by us and our suppliers into the U.S. may continue to evolve. We continue to monitor developments and to evaluate and implement mitigation strategies to address the potential sales and margin impact of current and potential future tariffs, as well as to take various actions designed to minimize price increases for our customers. There can be no assurance we will be successful in our efforts, or that price increases will not adversely affect customer behavior.

Previous wording

Our core customers are often among the first to be affected by negative or uncertain economic conditions and among the last to feel the effects of improving economic conditions, particularly when trends are inconsistent and of an uncertain duration. Our customers continue to feel constrained in the current macroeconomic environment and to experience elevated expenses that generally comprise a large portion of their household budgets, such as rent, healthcare, energy and fuel prices, as well as cost inflation in frequently purchased household products (including food), which we expect will continue to pressure our customers’ spending overall and particularly in our non-consumables categories. We expect a promotional environment in 2025 similar to that in 2024.

Current wording

Our core customers are often among the first to be affected by negative or uncertain economic conditions and among the last to feel the effects of improving economic conditions, particularly when trends are inconsistent and of an uncertain duration. Our customers continue to feel constrained in the current macroeconomic environment and to experience elevated expenses that generally comprise a large portion of their household budgets, such as rent, healthcare, energy and fuel prices, as well as cost inflation in frequently purchased household products (including food), which we expect will continue to pressure our customers’ spending overall and particularly in our non-consumables categories. The promotional environment in 2025 continues to be similar to that in 2024.

Previous wording

We seek to drive profitable sales growth through initiatives aimed at increasing customer traffic and average transaction amount. Historically, sales in our consumables category, which tend to have lower gross margins, have been the key drivers of net sales and customer traffic, while sales in our non-consumables categories, which tend to have higher gross margins, have been the key drivers of more profitable sales growth and average transaction amount. Our sales mix remains heavily weighted towards consumables, although we saw slight improvement to our sales mix in the second quarter as compared to last year’s second quarter. Certain of our initiatives are intended to better optimize our sales mix; however, there can be no assurances that these efforts will be successful.

Current wording

We seek to drive profitable sales growth through initiatives aimed at increasing customer traffic and average transaction amount. Historically, sales in our consumables category, which tend to have lower gross margins, have been the key drivers of net sales and customer traffic, while sales in our non-consumables categories, which tend to have higher gross margins, have been the key drivers of more profitable sales growth and average transaction amount. Our sales mix remains heavily weighted towards consumables, although we saw slight improvement in our year-to-date sales mix as of the third quarter as compared to the same period last year. Certain of our initiatives are intended to better optimize our sales mix; however, there can be no assurances that these efforts will be successful.

Previous wording

We continue to experience significant levels of inventory shrink and damages. However, we have made progress in reducing shrink for four consecutive quarters, and we began to see improvement in damages during the first two quarters of 2025. We continue to take actions designed to address shrink and damage levels.

Current wording

We continue to experience significant levels of inventory shrink and damages. However, we have made progress in reducing shrink for five consecutive quarters, and we began to see improvement in damages during the first three quarters of 2025. We continue to take actions designed to address shrink and damage levels.

Previous wording

We continue to implement and invest in certain strategic initiatives that we believe will help drive profitable sales growth with both new and existing customers and capture long-term growth opportunities. Such opportunities include providing our customers with a variety of shopping access points and even greater value and convenience by leveraging and developing digital tools and technology, such as our Dollar General app, which contains a variety of tools to enhance the shopping experience. We remain focused on enhancing both the in-store and digital shopping experience, while driving operational efficiency. Partnerships with third-party delivery services are available in the majority of our stores, providing added convenience and incremental sales. Additionally, in September 2024, we partnered with a third-party provider to fully execute a same-day home delivery offering through our DG app and website in select stores. We plan to significantly expand this offering to additional stores throughout 2025. Furthermore, we believe these efforts will contribute to the continued growth of our DG Media Network, our platform that connects brand partners with our customers.

Current wording

We continue to implement and invest in certain strategic initiatives that we believe will help drive profitable sales growth with both new and existing customers and capture long-term growth opportunities. Such opportunities include providing our customers with a variety of shopping access points and even greater value and convenience by leveraging and developing digital tools and technology, such as our Dollar General app, which contains a variety of tools to enhance the shopping experience. We remain focused on enhancing both the in-store and digital shopping experience, while driving operational efficiency. Partnerships with third-party delivery services are available in the majority of our stores, providing added convenience and incremental sales. Additionally, in September 2024, we partnered with a third-party provider to fully execute a same-day home delivery offering through our DG app and website in select stores. We have significantly expanded this offering to additional stores throughout 2025. Furthermore, we believe these efforts will contribute to the continued growth of our DG Media Network, our platform that connects brand partners with our customers.

Previous wording

We are expanding our efforts to improve the performance and profitability of our mature stores through the rollout of an incremental remodel program, Project Elevate. This partial-remodel initiative is designed to refresh and optimize the merchandising in our stores, and in turn, enhance the shopping experience for our customers, while also mitigating future repairs and maintenance expense. Project Elevate remodels are incremental to our full-remodel program, Project Renovate.

Current wording

In 2025, we expanded our efforts to improve the performance and profitability of our mature stores through the rollout of an incremental remodel program, Project Elevate. This partial-remodel initiative is designed to refresh and optimize the merchandising in our stores, and in turn, enhance the shopping experience for our customers, while also potentially mitigating future repairs and maintenance expense. Project Elevate remodels are incremental to our full-remodel program, Project Renovate.

Previous wording

We also remain focused on capturing growth opportunities. In the second quarter of 2025, we opened a total of 204 new stores, remodeled 729 stores through Project Elevate and 592 stores through Project Renovate, relocated 15 stores and closed 40 stores. In 2025, we plan to open approximately 575 new stores (as well as up to 15 stores in Mexico), fully remodel approximately 2,000 stores through Project Renovate, partially remodel 2,250 stores through Project Elevate, and relocate approximately 45 stores, for a total of 4,885 real estate projects.

Current wording

We also remain focused on capturing growth opportunities. In the third quarter of 2025, we opened a total of 196 new stores, remodeled 651 stores through Project Elevate and 524 stores through Project Renovate, relocated 8 stores and closed 41 stores. In 2025, we plan to open approximately 575 new stores (as well as up to 15 stores in Mexico), fully remodel approximately 2,000 stores through Project Renovate, partially remodel 2,250 stores through Project Elevate, and relocate approximately 45 stores, for a total of 4,885 real estate projects. In 2026, we plan to open approximately 450 new stores (as well as approximately 10 stores in Mexico), fully remodel approximately 2,000 stores through Project Renovate, with an additional 2,250 stores partially remodeled through Project Elevate, and relocate approximately 20 stores, for a total of 4,730 real estate projects.

Previous wording

pOpshelf is a unique retail concept focused on categories such as seasonal and home décor, health and beauty, home cleaning supplies, and party and entertainment goods. In light of the softer discretionary sales environment, we previously converted certain pOpshelf stores to Dollar General stores, and do not believe opening new pOpshelf stores in 2025 is a prudent use of capital. At the end of the second quarter of 2025, we operated 180 standalone pOpshelf stores. We are taking focused actions in 2025 designed to improve the performance of pOpshelf stores, although there can be no assurances that our efforts will be successful.

Current wording

pOpshelf is a unique retail concept focused on categories such as seasonal and home décor, health and beauty, home cleaning supplies, and party and entertainment goods. In light of the softer discretionary sales environment, we previously converted certain pOpshelf stores to Dollar General stores, and do not believe opening new pOpshelf stores in 2025 or 2026 is a prudent use of capital. At the end of the third quarter of 2025, we operated 180 standalone pOpshelf stores. We continue to take focused actions designed to improve the performance of pOpshelf stores, although there can be no assurances that our efforts will be successful.

Previous wording

We expect store format innovation to allow us to capture additional growth opportunities as we continue to utilize the most productive of our various Dollar General store formats based on the specific market opportunity. In 2025 we expect the significant majority of the stores to be in one of our 8,500 square foot formats. These formats allow for expanded high-capacity-cooler counts, an extended queue line, and a broader product assortment, including an enhanced non-consumable offering, a larger health and beauty section, and produce in select stores.

Current wording

We expect store format innovation to allow us to capture additional growth opportunities as we continue to utilize the most productive of our various Dollar General store formats based on the specific market opportunity. In 2025 and 2026 we expect the significant majority of the new stores to be in one of our 8,500 square foot formats. These formats allow for expanded high-capacity-cooler counts, an extended queue line, and a broader product assortment, including an enhanced non-consumable offering, a larger health and beauty section, and produce in select stores.

Previous wording

We believe ongoing inflationary pressures could continue to affect our vendors and customers and our operating results. Both inflation and higher interest rates have significantly increased new store opening costs and occupancy costs in recent years, and while we continue to have strong new store returns and plan to grow our store base significantly in 2025, these increased costs have negatively impacted our projected new store returns and influenced our new store growth plans.

Current wording

We believe ongoing inflationary pressures could continue to affect our vendors and customers and our operating results. Both inflation and higher interest rates have significantly increased new store opening costs and occupancy costs in recent years, and while we continue to have strong new store returns and plan to grow our store base significantly in 2025 and 2026, these increased costs have negatively impacted our projected new store returns and influenced our new store growth plans.

Previous wording

Accounting Periods. We utilize a 52-53 week fiscal year convention that ends on the Friday nearest to January 31. The following text contains references to years 2025 and 2024, which represent the 52-week fiscal years ending or ended January 30, 2026 and January 31, 2025, respectively. References to the second quarter accounting periods for 2025 and 2024 contained herein refer to the 13-week accounting periods ended August 1, 2025 and August 2, 2024, respectively.

Current wording

Accounting Periods. We utilize a 52-53 week fiscal year convention that ends on the Friday nearest to January 31. The following text contains references to years 2025 and 2024, which represent the 52-week fiscal years ending or ended January 30, 2026 and January 31, 2025, respectively. References to the third quarter accounting periods for 2025 and 2024 contained herein refer to the 13-week accounting periods ended October 31, 2025 and November 1, 2024, respectively.

Previous wording

The following tables contain results of operations data for the second 13-week periods and the 26-week periods of 2025 and 2024, and the dollar and percentage variances among those periods. Basis point amounts referred to below are equal to 0.01% as a percentage of net sales:

Current wording

The following tables contain results of operations data for the third 13-week periods and the 39-week periods of 2025 and 2024, and the dollar and percentage variances among those periods. Basis point amounts referred to below are equal to 0.01% as a percentage of net sales:

Previous wording

Net Sales. For the 2025 period, net sales increased 5.1% to $10.73 billion. The net sales increase in the 2025 period was primarily due to sales from new stores and a same-store sales increase of 2.8% compared to the 2024 period, partially offset by the impact of store closures. The increase in same-store sales reflects a 1.5% increase in customer traffic and a 1.2% increase in average transaction amount. The increase in average transaction amount was driven by higher average retail prices and an increase in items per transaction. Same-store sales increased in the consumables, seasonal, home products and apparel categories. For the 2025 period, there were 19,916 same-stores, which accounted for sales of $10.37 billion.

Current wording

Net Sales. For the 2025 period, net sales increased 4.6% to $10.65 billion. The net sales increase in the 2025 period was primarily due to sales from new stores and a same-store sales increase of 2.5% compared to the 2024 period, partially offset by the impact of store closures. The increase in same-store sales reflects a 2.5% increase in customer traffic and a flat average transaction amount. The change in the average transaction amount was driven by an increase in average retail prices offset by a decrease in items per transaction. Same-store sales increased in the consumables, seasonal, home products and apparel categories. For the 2025 period, there were 20,095 same-stores, which accounted for sales of $10.32 billion.

Previous wording

Gross Profit. For the 2025 period, gross profit increased by 9.9%, and as a percentage of net sales increased by 137 basis points to 31.3%, compared to the 2024 period. The increase in the gross profit rate 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.

Current wording

Gross Profit. For the 2025 period, gross profit increased by 8.4%, and as a percentage of net sales increased by 107 basis points to 29.9%, compared to the 2024 period. The increase in the gross profit rate was driven primarily by higher inventory markups and lower shrink, partially offset by an increased LIFO provision.

Previous wording

Selling, General & Administrative Expenses. SG&A was 25.6% as a percentage of net sales in the 2025 period compared to 24.6% in the comparable 2024 period, an increase of 99 basis points. The primary expenses that were a higher percentage of net sales in the current year period were incentive compensation, repairs and maintenance and retail labor.

Current wording

*Selling, General & Administrative**Expenses (“SG&A”).*SG&A was 25.9% as a percentage of net sales in the 2025 period compared to 25.7% in the comparable 2024 period, an increase of 25 basis points. The primary expenses that were a higher percentage of net sales in the current year period were incentive compensation, repairs and maintenance and utilities, partially offset by a decrease in hurricane-related costs.

Previous wording

Interest Expense, net. Interest expense, net decreased by $10.4 million to $57.7 million in the 2025 period primarily due to lower average outstanding borrowings.

Current wording

Interest Expense, net. Interest expense, net decreased by $11.9 million to $55.9 million in the 2025 period primarily due to lower average outstanding borrowings.

Previous wording

Income Taxes. The effective income tax rate for the 2025 period was 23.4% compared to a rate of 22.8% for the 2024 period. The tax rate for the 2025 period was higher than the comparable 2024 period primarily due the enactment of Pillar Two minimum tax in a certain jurisdiction.

Current wording

*Income Taxes.*The effective income tax rate for the 2025 period was 23.6% compared to a rate of 23.2% for the 2024 period. The tax rate for the 2025 period was higher than the comparable 2024 period primarily due to the enactment of Pillar Two minimum tax in a certain jurisdiction.

Previous wording

Net Sales. For the 2025 period, net sales increased 5.2% to $21.16 billion. The net sales increase in the 2025 period was primarily due to sales from new stores and a same-store sales increase of 2.6% compared to the 2024 period, partially offset by the impact of store closures. The increase in same-store sales reflects a 1.9% increase in average transaction amount and a 0.6% increase in customer traffic. The increase in average transaction amount was driven by higher average retail prices and an increase in items per transaction. Same-store sales increased in the consumables, seasonal, home products and apparel categories. For the 2025 period, there were 19,916 same-stores which accounted for sales of $20.39 billion.

Current wording

Net Sales. For the 2025 period, net sales increased 5.0% to $31.81 billion. The net sales increase in the 2025 period was primarily due to sales from new stores and a same-store sales increase of 2.6% compared to the 2024 period, partially offset by the impact of store closures. The increase in same-store sales reflects a 1.3% increase in customer traffic and a 1.3% increase in average transaction amount. The increase in average transaction amount was driven by higher average retail prices and an increase in items per transaction. Same-store sales increased in the consumables, seasonal, home products and apparel categories. For the 2025 period, there were 20,095 same-stores which accounted for sales of $30.69 billion.

Previous wording

The amount of net sales represented by each of our product categories for the 26 weeks ended August 1, 2025, and August 2, 2024, as well as the percentage change between such periods, were as follows:

Current wording

The amount of net sales represented by each of our product categories for the 39 weeks ended October 31, 2025, and November 1, 2024, as well as the percentage change between such periods, were as follows:

Previous wording

The percentage of net sales represented by each of our product categories for the 26 weeks ended August 1, 2025, and August 2, 2024, were as follows:

Current wording

The percentage of net sales represented by each of our product categories for the 39 weeks ended October 31, 2025, and November 1, 2024, were as follows:

Previous wording

Gross Profit. For the 2025 period, gross profit increased by 8.9%, and as a percentage of net sales increased by 108 basis points to 31.2%, compared to the 2024 period. The increase in the gross profit rate was driven primarily by lower shrink, higher inventory markups and lower inventory damages, partially offset by an increased LIFO provision and increased markdowns.

Current wording

Gross Profit. For the 2025 period, gross profit increased by 8.8%, and as a percentage of net sales increased by 108 basis points to 30.7%, compared to the 2024 period. The increase in the gross profit rate was driven primarily by lower shrink and higher inventory markups, partially offset by an increased LIFO provision.

Previous wording

*Selling, General & Administrative**Expenses (“SG&A”).*SG&A was 25.8% as a percentage of net sales in the 2025 period compared to 24.6% in the comparable 2024 period, an increase of 121 basis points. The primary expenses that were a higher percentage of net sales in the current year period were incentive compensation, repairs and maintenance and benefits.

Current wording

Selling, General & Administrative Expenses. SG&A was 25.7% as a percentage of net sales in the 2025 period compared to 25.0% in the comparable 2024 period, an increase of 74 basis points. The primary expenses that were a higher percentage of net sales in the current year period were incentive compensation and repairs and maintenance, partially offset by a decrease in hurricane-related costs.

Previous wording

Interest Expense, net. Interest expense, net decreased by $18.2 million to $122.3 million in the 2025 period primarily due to lower average outstanding borrowings.

Current wording

Interest Expense, net. Interest expense, net decreased by $30.1 million to $178.3 million in the 2025 period primarily due to lower average outstanding borrowings.

Previous wording

*Income Taxes.*The effective income tax rate for the 2025 period was 23.5% compared to a rate of 22.3% for the 2024 period. The tax rate for the 2025 period was higher than the comparable 2024 period primarily due to the enactment of Pillar Two minimum tax in a certain jurisdiction.

Current wording

Income Taxes. The effective income tax rate for the 2025 period was 23.5% compared to a rate of 22.9% for the 2024 period. The tax rate for the 2025 period was higher than the comparable 2024 period primarily due to the enactment of Pillar Two minimum tax in a certain jurisdiction.

Previous wording

requirements, capital spending, and anticipated dividend payments for a period that includes the next twelve months as well as the next several years. However, our ability to maintain sufficient liquidity may be affected by numerous factors, many of which are outside of our control. Depending on our liquidity levels, conditions in the capital markets and other factors, we may from time to time consider the issuance of debt, equity or other securities, the proceeds of which could provide additional liquidity for our operations. All of our material borrowing arrangements are described in greater detail in Note 5 to the unaudited consolidated financial statements.

Current wording

We believe our cash flow from operations and existing cash balances, combined with availability under the unsecured revolving credit facility (the “Revolving Facility”), the unsecured commercial paper notes (the “CP Notes”) and access to the debt markets, will provide sufficient liquidity to fund our current obligations, projected working capital requirements, capital spending, and anticipated dividend payments for a period that includes the next twelve months as well as the next several years. However, our ability to maintain sufficient liquidity may be affected by numerous factors, many of which are outside of our control. Depending on our liquidity levels, conditions in the capital markets and other factors, we may from time to time consider the issuance of debt, equity or other securities, the proceeds of which could provide additional liquidity for our operations. All of our material borrowing arrangements are described in greater detail in Note 5 to the unaudited consolidated financial statements.

Previous wording

In April 2025, we redeemed the $500.0 million aggregate principal amount of outstanding 4.15% senior notes due November 2025. In addition, we have provided notice to the trustee of our $600.0 million aggregate principal amount of outstanding 3.875% senior notes due April 2027, that we intend to redeem the entire principal amount of such notes in the third quarter. We expect to use cash on hand for this redemption.

Current wording

In April 2025, we redeemed the $500.0 million aggregate principal amount of outstanding 4.15% senior notes due November 2025. In September 2025, we redeemed the $600.0 million aggregate principal amount of the outstanding 3.875% senior notes due April 2027. In addition, we have provided notice to the trustee of our $550.0 million aggregate principal amount of outstanding 4.625% due November 2027, that we intend to redeem the entire principal amount of such notes in the fourth quarter. We expect to use cash on hand for this redemption.

Previous wording

Unless otherwise noted, all references to the 2025 and 2024 periods in the discussion of cash flows from operating, investing and financing activities below refer to the 26-week periods ended August 1, 2025 and August 2, 2024, respectively.* *

Current wording

Unless otherwise noted, all references to the 2025 and 2024 periods in the discussion of cash flows from operating, investing and financing activities below refer to the 39-week periods ended October 31, 2025 and November 1, 2024, respectively.* *

Previous wording

*Cash flows from operating activities.*Cash flows from operating activities were $1.8 billion in the 2025 period, which represents a $162.1 million increase compared to the 2024 period. Changes in merchandise inventories resulted in a $44.7 million increase in the 2025 period as compared to a decrease of $23.4 million in the 2024 period as further discussed below. Net income increased $65.8 million in the 2025 period compared to the 2024 period. Changes in accrued expenses resulted in a $167.3 million increase in the 2025 period compared to $109.8 million increase in the 2024 period, due primarily to the timing of accruals and payments for incentive compensation and property taxes. Changes in accounts payable resulted in a $111.2 million increase in the 2025 period compared to a $306.3 million increase in the 2024 period, due primarily to the timing of inventory receipts and related payments. Changes in income taxes in the 2025 period compared to the 2024 period are primarily due to the amount of income tax accrued and timing of payments.

Current wording

*Cash flows from operating activities.*Cash flows from operating activities were $2.8 billion in the 2025 period, which represents a $623.7 million increase compared to the 2024 period. Net income increased $152.0 million in the 2025 period compared to the 2024 period. Changes in merchandise inventories resulted in a $92.7 million decrease in the 2025 period as compared to a decrease of $147.5 million in the 2024 period as further discussed below. Changes in other noncash losses resulted in a $153.8 million increase in the 2025 period compared to a $50.4 million increase in the 2024 period, primarily due to an increase in the LIFO provision. Changes in accrued expenses resulted in a $290.0 million increase in the 2025 period compared to a $137.9 million increase in the 2024 period, due primarily to the timing of accruals and payments for incentive compensation and interest. Changes in accounts payable resulted in a $472.8 million increase in the 2025 period compared to a $494.8 million increase in the 2024 period, due primarily to the timing of inventory receipts and related payments. Changes in income taxes in the 2025 period compared to the 2024 period are primarily due to the amount of income tax accrued and timing of payments.

Previous wording

On an ongoing basis, we closely monitor and manage our inventory balances, which may fluctuate from period to period based on new store openings, the timing of purchases, and other factors. Total merchandise inventories decreased 2% in the 2025 period compared to flat in the 2024 period. Percent changes in our four inventory categories for the 2025 period compared to the 2024 period were as follows:

Current wording

On an ongoing basis, we closely monitor and manage our inventory balances, which may fluctuate from period to period based on new store openings, the timing of purchases, and other factors. Total merchandise inventories decreased 1% in the 2025 period compared to an increase of 2% in the 2024 period. Percent changes in our four inventory categories for the 2025 period compared to the 2024 period were as follows:

Previous wording

On a per store basis, inventories at August 1, 2025, decreased by 7.4% compared to the balances at August 2, 2024.

Current wording

On a per store basis, inventories at October 31, 2025, decreased by 8.2% compared to the balances at November 1, 2024.

Previous wording

(a) Remodeled store counts include 1,151 stores through Project Renovate and 1,397 stores through Project Elevate.

Current wording

(a) Remodeled store counts include 1,675 stores through Project Renovate and 2,048 stores through Project Elevate.

Previous wording

Capital expenditures for 2025 are projected to be approximately $1.3 billion to $1.4 billion. We anticipate funding 2025 capital requirements with a combination of some or all of the following: existing cash balances, cash flows from operations, availability under our Revolving Facility and/or the issuance of additional CP Notes. We plan to continue to invest in store growth and development of new stores and the remodel or relocation of existing stores, including remodeling stores through Project Renovate and Project Elevate. Capital expenditures in 2025 are anticipated to support our store growth as well as our remodel and relocation initiatives, including capital outlays for leasehold improvements, fixtures and equipment; the construction of new stores; costs to support and enhance our supply chain initiatives for existing distribution center facilities and replacement of certain transportation related assets; technology initiatives; as well as routine and ongoing capital requirements.

Current wording

We now expect capital spending to be towards the low end of our previously stated range of $1.3 billion to $1.4 billion. We anticipate funding 2025 capital requirements with a combination of some or all of the following: existing cash balances, cash flows from operations, availability under our Revolving Facility and/or the issuance of additional CP Notes. We plan to continue to invest in store growth and development of new stores and the remodel or relocation of existing stores, including remodeling stores through Project Renovate and Project Elevate. Capital expenditures in 2025 are anticipated to support our store growth as well as our remodel and relocation initiatives, including capital outlays for leasehold improvements, fixtures and equipment; the construction of new stores; costs to support and enhance our supply

Previous wording

Cash flows from financing activities. During the 2025 period, we had repayments of long-term obligations of $509.6 million. During the 2025 and 2024 periods, we paid cash dividends of $259.7 million and $259.5 million, respectively.

Current wording

Cash flows from financing activities. During the 2025 period, we had repayments of long-term obligations of $1.1 billion. During the 2025 and 2024 periods, we paid cash dividends of $389.6 million and $389.2 million, respectively.

Previous wording

flexibility, we did not repurchase any shares under this program in the first quarter of 2025 and do not plan to repurchase shares during the remainder of the year. The repurchase authorization has no expiration date, and future repurchases will depend on a variety of factors, including price, market conditions, compliance with the covenants and restrictions under our debt agreements, cash requirements, excess debt capacity, results of operations, financial condition and other factors. The repurchase program may be modified or terminated from time to time at the discretion of our Board of Directors. For more about our share repurchase program, see Note 9 to the unaudited consolidated financial statements contained in Part I, Item 1 of this report.

Current wording

As of October 31, 2025, our common stock repurchase program had a total remaining authorization of approximately $1.38 billion. The authorization allows repurchases from time to time in open market transactions, including pursuant to trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, or in privately negotiated transactions. To preserve our investment grade credit rating and maintain financial flexibility, we did not repurchase any shares under this program in the first three quarters of 2025 and do not plan to repurchase shares during the remainder of the year. The repurchase authorization has no expiration date, and future repurchases will depend on a variety of factors, including price, market conditions, compliance with the covenants and restrictions under our debt agreements, cash requirements, excess debt capacity, results of operations, financial condition and other factors. The repurchase program may be modified or terminated from time to time at the discretion of our Board of Directors. For more about our share repurchase program, see Note 9 to the unaudited consolidated financial statements contained in Part I, Item 1 of this report.