UPDATE: Dollar General Posts In-Line Q4 Earnings

reported in-line earnings for the fourth quarter. The Goodlettsville, Tennessee-based company posted quarterly net income of $355 million, or $1.17 per share, compared to $322 million, or $1.01 per share, in the year-ago quarter. Its sales rose 9.9% to $4.94 billion. However, analysts were expecting earnings of $1.17 per share on revenue of $4.95 billion. Same-store sales surged 4.9% in the quarter. Gross profit, as a percentage of sales, narrowed to 31.7% in the fourth quarter, down from 31.9% in the year-ago quarter. As of January 30, 2015, Dollar General's total merchandise inventories, at cost, increased to $2.78 billion, from $2.55 billion as of January 31, 2014 Dollar General's board approved an additional $1.0 billion for share repurchases, and also announced a quarterly dividend of $0.22 per share. "In 2014, momentum built in our business as we moved through the year, marking our twenty-fifth year of consecutive same-store sales growth. We are pleased with our fourth quarter results which reflect accelerating same-store sales and we intend to capitalize on that momentum as we move into 2015," said Rick Dreiling, chairman and CEO. For 2015, Dollar General projects earnings of $3.85 to $3.95 per share, sales growth of 8% to 9% and same-store sales growth of 3% to 3.5%. Analysts had expected 2015 earnings of $3.99 per share. The company announced its plans to open around 730 new stores in 2015. Dollar General shares rose 0.59% to close at $71.45 yesterday.