Dollar General's Q2 Highlights: Earnings Beat, 4.6% Comps Growth, Stock Buyback Boost & More

Dollar General's Q2 Highlights: Earnings Beat, 4.6% Comps Growth, Stock Buyback Boost & More
  • Dollar General Corp DG reported second-quarter FY22 sales growth of 9% year-on-year to $9.43 billion, beating the consensus of $9.39 billion.
  • Same-store sales increased 4.6% versus last year. Positive sales contributions from new stores and growth in same-store sales drove the sales growth.
  • The gross profit margin for the quarter increased 69 basis points Y/Y to 32.3%. The operating margin was 9.7%, and operating income for the quarter rose 7.5% to $913.4 million.
  • Also ReadThis Analyst Is Bullish On Dollar General, So Long As It Hovers Above This Price Range
  • The company held $326.3 million in cash and equivalents as of July 29, 2022. 
  • EPS of $2.98 beat the analyst consensus of $2.93.
  • As of July 29, 2022, total merchandise inventories, at cost, were $6.9 billion, an increase of 25.1% on a per-store basis. 
  • On August 24, 2022, the company’s board increased the authorization under the share repurchase program by $2.0 billion. The company had total remaining authorization for future repurchases of $1.0 billion at the Q2 end.
  • On August 23, 2022, the company’s board declared a quarterly cash dividend of $0.55 per share on its common stock, payable on or before October 18, 2022, to shareholders of record on October 4, 2022.
  • DG promoted John Garratt to President and CFO, effective September 1, 2022. Garratt joined Dollar General in 2014 and has served as EVP and CFO since December 2015.
  • Outlook: Dollar General raised FY22 sales growth to 11% from the previous outlook of 10% - 10.5%. Same-store sales growth of 4.0% - 4.5% (prior 3%-3.5%).
  • The company continues to expect FY22 EPS growth of 12% - 14%.
  • The company plans to execute 2,930 - 2,980 (prior view 2,980) real estate projects, including 1,010 - 1,060 (prior view 1,110) new store openings.
  • Price Action: DG shares are trading higher by 0.18% at $247.90 on the last check Thursday.
  • Photo Via Company

Posted In: BriefsEarningsNewsGuidanceDividendsBuybacks