Free Post Earnings Research Report: Dollar General’s Net Sales Jumped 9.0%; EPS Surged 33.3%

LONDON, UK / ACCESSWIRE / June 28, 2018 / If you want access to our free earnings report on Dollar General Corp. (NYSE: DG), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DG. The Company reported its first quarter fiscal 2018 operating and financial results on May 31, 2018. The Company’s reported numbers came in below market expectations. Additionally, the discount retailer provided its guidance for the full fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Dollar General most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the 13-week first quarter ended May 04, 2018, Dollar General’s net sales increased 9.0% to $6.11 billion compared to $5.61 billion in Q1 2017. The Company’s net sales for the reported quarter was positively affected by the sales contribution from new stores. Dollar General’s same-store sales increased 2.1% on a y-o-y basis, driven by an increase in average transaction amount, partially offset by a decline in customer traffic. Dollar General’s revenue numbers lagged analysts’ estimates of $6.18 billion.

During Q1 2018, Dollar General’s gross profit as a percentage of net sales was 30.5% in Q1 2018 compared to 30.3% in Q1 2017, reflecting an increase of 17 basis points (bps), primarily attributable to higher initial markups on inventory purchases and an improved rate of inventory shrink.

For Q1 2018, Dollar General’s selling, general, and administrative expenses (SG&A) as a percentage of net sales were 22.4%, up 60 bps compared to 21.8% in Q1 2017, primarily attributable to increased retail labor expenses, due in part to the investment in store manager compensation, and increases in occupancy costs, utilities, and property taxes on leased stores.

Dollar General reported a net income of $365 million, or $1.36 per diluted share, in Q1 2018 compared to $279 million, or $1.02 per diluted share, in Q1 2017. The Company’s earnings lagged Wall Street’s estimates of $1.40 per share.

During Q1 2018, Dollar General opened 241 new stores, remodeled 322 stores, and relocated 31 stores.

Merchandise Inventories

As of May 04, 2018, Dollar General’s total merchandise inventories, at cost, were $3.59 billion compared to $3.30 billion as of May 05, 2017, reflecting an increase of approximately 0.4% on a per store basis.

Financial Position

During Q1 2018, Dollar General’s total additions to property and equipment were $165 million. For the reported quarter, the Company repurchased $150 million of its common stock, or 1.6 million shares, at an average price of $94.41 per share. From the inception of the share repurchase program in December 2011 through the end of Q1 2018, Dollar General has repurchased 83.0 million shares of its common stock at an average price of $63.80 per share, for a total cost of $5.3 billion. The total remaining authorization for future repurchases was approximately $1.2 billion at the end of Q1 2018.

On May 29, 2018, Dollar General’s Board of Directors declared a quarterly cash dividend of $0.29 per share on its common stock, payable on or before July 24, 2018, to shareholders of record as on July 10, 2018.

Outlook

For the 52-week full fiscal year ending February 01, 2019, Dollar General is forecasting net sales to increase approximately 9%, with same-store sales growth estimated to be in the mid-2% range. The Company expects operating margin rate to be relatively unchanged on a y-o-y basis.

For FY18, Dollar General is projecting diluted earnings per share to be in the range of $5.95 to $6.15. The Company’s share repurchases are expected to be approximately $850 million, while its capital expenditure is estimated to be in the band of $725 million to $800 million for FY18.

During FY18, Dollar General is planning to open approximately 900 new stores, remodel 1,000 stores, and relocate 100 stores.

Stock Performance Snapshot

June 27, 2018 – At Wednesday’s closing bell, Dollar General’s stock fell 1.06%, ending the trading session at $98.67.

Volume traded for the day: 1.14 million shares.

Stock performance in the last month – up 2.52%; previous three-month period – up 6.17%; past twelve-month period – up 39.38%; and year-to-date – up 6.09%

After yesterday’s close, Dollar General’s market cap was at $26.47 billion.

Price to Earnings (P/E) ratio was at 20.38.

The stock has a dividend yield of 1.18%.

The stock is part of the Services sector, categorized under the Discount, Variety Stores industry.

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