Categories Consumer, Earnings

Dollar General Q1 earnings, sales beat Street view; stock gains

Discount store operator Dollar General Corporation (NYSE: DG) reported an 8% increase in first-quarter sales, supported by strong comparable store sales. Consequently, earnings rose sharply and exceeded estimates, driving the stock higher in premarket trading Thursday. The company also reaffirmed its full-year guidance.

Dollar General Q1 sales up 8%

Net profit was $385 million or $1.48 per share in the first quarter, compared to $365 million or $1.36 per share in the same period of last year.

Net sales moved up 8.3% to $6.63 billion, exceeding Wall Street’s forecast. The top-line benefitted from a 3.8% growth in comparable store sales, which was partially offset by the impact of store closures.

The top-line benefitted from higher comp sales, which was partially offset by the impact of store closures

“During 2019, we will enter our 80th year of serving others, and we remain dedicated to bringing innovation to our retail channel and delivering on our commitment of value and convenience to our customers. We are excited about our future and believe we are creating long-term value for our shareholders,” said CEO Todd Vasos.

During the quarter, Dollar General opened 240 new stores and remodels 330 stores, as part of its renewed real estate strategy. The board of directors declared a cash dividend of $0.32 per share for the second quarter, to be paid on July 23 to shareholders of record on July 9. Overall, $283 million was returned to shareholders in the form of share repurchases and dividends during the three-month period.

OUTLOOK

The management reaffirmed its full-year 2019 outlook for sales growth at 7% and continues to see a 2.5% increase in same-store sales. Full-year operating profit is estimated to increase between 4% and 6%. The forecast for earnings has been reiterated in the range of $6.30 per share to $6.50 per share.  

The company confirmed its plan to repurchase shares worth approximately $1 billion during the year when capital expenditure is expected to come in the range of $775 million to $825 million.

PEER PERFORMANCE

Meanwhile, Dollar Tree’s (DLTR) shares slipped 4% after the discount store chain posted weaker than expected earnings of $1.14 per share for the first quarter. Revenues rose 5% to $5.81 billion and topped expectations.  There was a 2.2% increase in same-store sales.

Shares of Dollar General gained 33% in the past twelve months and rose 10% since the beginning of 2019. The stock closed the last trading session lower but gained sharply following Thursday’s earnings report.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top