The company’s growth initiatives are likely to help drive increases in sales and profits for the to-be-reported quarter. However, higher costs continue to be a concern as they impact margins. In general, the sentiment around the second quarter results appear to be positive.
Dollar General and its peer Dollar Tree (NASDAQ: DLTR) were slapped with fines amounting to $1.2 million on Monday for selling expired products. Both chains sold over-the-counter drugs that were expired, while Dollar General was penalized for selling obsolete motor oil that were not suitable for modern cars. This comes as a huge hit to the company and updates on this are something to keep an eye out for.
Also see: Dollar General Q1 2019 Earnings Report
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In the first quarter of 2019, Dollar General exceeded sales
and earnings estimates with an 8% increase in net sales to $6.6 billion and a
9% increase in EPS to $1.48. Same-store sales increased 3.8%.
For the full year
of 2019, Dollar General has guided for sales growth of 7% and a 2.5% increase
in same-store sales. The EPS forecast is in the range of $6.30-6.50.
Dollar General’s shares have gained 29% year-to-date. The stock was up 1.3% in midday trade on Monday.