Investing.com -- Dollar General Corporation (NYSE: DG) shares are trading around 3.3% higher premarket on Tuesday after the company reported first-quarter earnings that exceeded earnings expectations.

Adjusted earnings per share of $2.00 beat the analyst consensus of $1.90 by $0.10. Revenue reached $10.8 billion, slightly below the analyst estimate of $10.82 billion, representing a 3.4% increase from $10.4 billion in the first quarter of fiscal 2025.

The earnings beat was driven by strong operating margin expansion, which offset headwinds from severe winter weather and higher fuel costs. Operating profit increased 10.8% to $638.5 million. Same-store sales rose 2.0%, with customer traffic up 1.4% and average transaction amounts increasing 0.5%. Gross profit margin expanded 65 basis points to 31.6%, driven by higher inventory markups and lower shrink and inventory damages. Shares rose 3.3% following the announcement.

"We are pleased with our first-quarter EPS performance, which exceeded our expectations as strong operating margin expansion more than offset the impact of severe winter weather and higher fuel costs," said Todd Vasos, Dollar General's chief executive officer.

For fiscal 2026, the company raised its full-year adjusted EPS guidance to a range of $7.20 to $7.45, up from its previous range of $7.10 to $7.35. The midpoint of $7.33 compares to the analyst consensus of $7.25. The company maintained its net sales growth outlook of 3.7% to 4.2% and same-store sales growth of 2.2% to 2.7%.

The company's board also declared a quarterly cash dividend of $0.59 per share, payable on or before July 21, 2026.