Market Overview

Summary of Important Points from Dollar General Earnings Conference Call

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Q1 Results:

•EPS up 13 percent to $0.71 per share

•Total sales increased 8.5 percent year over year, reaching a record of $4.2 billion

•Same-store sales grew 2.6 percent

•Adjusted operating profit increased 3 percent to $396 million

•Gross profit dollars increased 5 percent

•SG&A expense were down from 21.6 percent to 21.3 percent of sales, an improvement of 37 basis points: primary due to decreases in compensation and general liability expenses

•Total inventories were up 14 percent to $2.41 billion

•Capital expenditures totaled to $150 million: mainly due to store upgrades and expansions

•165 new stores were opened during the quarter with 207 remodeled

Outlook for 2014:

•EPS expected to be in the range of $3.15 to $3.22

•Total sales are expected to increase 10 to 11 percent

•Same-store sales are expected to increase 4 to 5 percent

•Operating profit is expected to be the range of $1.73 billion to $1.77 billion

•635 new stores are expected to open with 550 stores remodeled or relocated

•Capital expenditures are expected to be in the range of $575 million to $625 million

•Significant initiative implementation of tobacco products in every store by the end of second quarter

Dollar General (NYSE: DG) closed on Monday at $53.55.

Posted-In: Earnings News Financing Retail Sales Economics


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