UPDATE: Dollar General Posts In-Line Q2 Earnings, But Sales Miss View
Dollar General (NYSE: DG) reported in-line profit for the fiscal second quarter. However, the company's revenue missed analysts' estimates.
The Goodlettsville, Tennessee-based company posted a quarterly profit of $251 million, or $0.83 per share, versus a year-ago profit of $245 million, or $0.75 per share.
Its sales climbed 7.5% to $4.72 billion. However, analysts were expecting a profit of $0.83 per share on revenue of $4.77 billion.
Dollar General's same-store sales rose 2.1% in the quarter, versus analysts' expectations for a 2.8% growth.
Gross profit dropped 53 basis points to 30.8% in the quarter. As of August 1, 2014, Dollar General's total merchandise inventories, at cost, were $2.79 billion, versus $2.53 billion as of August 2, 2013.
“Dollar General's second quarter sales trends improved over the first quarter as we grew both customer traffic and average ticket for the 26th consecutive quarter,” said Rick Dreiling, Dollar General's Chairman and Chief Executive Officer.
Dollar General also affirmed its forecast for the full year. However, the company now expects same-store sales to rise by 3% to 3.5%.
The executive added, “In regards to our proposal to acquire Family Dollar, we remain firmly committed to the acquisition. The financial benefits of our offer to Family Dollar shareholders are indisputable, and the proposed combination would unlock tremendous value for Dollar General shareholders. We continue to believe the potential antitrust issues are manageable and that our transaction as proposed is both superior and achievable.”
Dollar General shares gained 0.78% to $64.20 in pre-market trading.
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