Dollar General (DG) reported $9.91 billion in revenue for the quarter ended April 2024, representing a year-over-year increase of 6.1%. EPS of $1.65 for the same period compares to $2.34 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $9.87 billion, representing a surprise of +0.47%. The company delivered an EPS surprise of +5.10%, with the consensus EPS estimate being $1.57.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Dollar General (DG) came out with quarterly earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.57 per share. This compares to earnings of $2.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.10%. A quarter ago, it was expected that this discount retailer would post earnings of $1.74 per share when it actually produced earnings of $1.83, delivering a surprise of 5.17%.Over the last four quarters, the com ...

Financial Performance - Net sales increased by 6.1% to $9.91 billion, driven primarily by new stores and a 2.4% increase in same-store sales[89] - Operating profit decreased by 26.3% to $546.1 million in the 2024 period compared to $740.9 million in the 2023 period[93] - Net income was $363.3 million, or $1.65 per diluted share, in the 2024 period, down from $514.4 million, or $2.34 per diluted share, in the 2023 period, representing a decrease of 29.4%[94] - Cash generated from operating activities increased by $472.7 million, or 247.3%, to $663.8 million in the 2024 period compared to the 2023 period[93] Profitability Metrics - Gross profit as a percentage of net sales decreased to 30.2% in 2024 from 31.6% in 2023, a decline of 145 basis points, mainly due to increased shrink and markdowns[89] - Gross profit increased by 1.2% but as a percentage of net sales decreased by 145 basis points to 30.2% in the 2024 period[96] - SG&A expense as a percentage of net sales increased to 24.7% in 2024 from 23.7% in 2023, an increase of 97 basis points due to higher retail labor and other costs[92] - Selling, General & Administrative expenses (SG&A) increased to 24.7% of net sales in the 2024 period from 23.7% in the 2023 period[96] Store Operations - The company opened 197 new stores, remodeled 463 stores, and relocated 21 stores in the first quarter of 2024, with plans to open approximately 730 new stores in fiscal 2024[77] - Average sales per square foot for all stores over the 52-week period ended May 3, 2024, were $264[89] Inventory Management - Inventory turnover was 3.8 times on a rolling four-quarter basis, with inventories per store decreasing by 9.5% compared to the previous year[89] - The company continues to face significant inventory shrink, which is expected to materially pressure financial results in 2024[74] - The company is focused on enhancing margins through various initiatives, including pricing optimization and inventory reduction efforts[73] Tax and Interest - Interest expense decreased by $10.6 million to $72.4 million in the 2024 period due to higher cash balances[96] - The effective income tax rate increased to 23.3% in the 2024 period from 21.8% in the 2023 period[97] Capital Expenditures and Dividends - Capital expenditures for 2024 are projected to be approximately $1.3 billion to $1.4 billion, focusing on store growth and supply chain enhancements[109] - Cash dividends paid during the 2024 period totaled $129.7 million, slightly up from $129.4 million in the 2023 period[110] Market Risk - There have been no material changes to the disclosures relating to market risk from the Annual Report on Form 10-K for the fiscal year ended February 2, 2024[112] Other Considerations - The "DG Fresh" initiative has positively contributed to sales and gross margin performance since its rollout in 2021, with ongoing optimization planned[76] - The conclusion of the COVID-19 pandemic student loan forbearance program has not had a material impact on the company's business, but future effects remain uncertain[69]

Exhibit 99 Dollar General Corporation Reports First Quarter 2024 Results Provides Financial Guidance for 2024 Second Quarter; Reiterates 2024 Full Year Financial Guidance Updates Real Estate Plans for 2024 Full Year GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)-- Dollar General Corporation (NYSE: DG) today reported financial results for its fiscal year 2024 first quarter (13 weeks) ended May 3, 2024. · Net Sales Increased 6.1% to $9.9 Billion · Same-Store Sales Increased 2.4% · Operating Profit Decreased 26.3% to ...

Dollar General Corporation (DG) is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on May 30 before the opening bell. The Zacks Consensus Estimate suggests that the company will achieve revenues of $9.87 billion, marking a 5.6% increase compared to the same quarter last year. This anticipated growth implies the discount retailer’s continued efforts to attract budget-conscious consumers.Despite the expected rise in revenues, Dollar General's bottom line is lik ...

Wall Street analysts expect Dollar General (DG) to post quarterly earnings of $1.57 per share in its upcoming report, which indicates a year-over-year decline of 32.9%. Revenues are expected to be $9.87 billion, up 5.6% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company reveals it ...

Dollar General (DG) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended April 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 30, 2024, might help the stock move higher if these key numbers are better than expec ...

The store chain has seen a considerable recovery from its bearish pullback in 2023, and overall guidance for 2024 seems bullish.Those who hopped on the Dollar General (DG -2.14%) train after its tough bear run in 2023 have been handsomely rewarded.The stock is up 49% over the last six months. Fourth quarter results caused a bit of skepticism after revenue declined by roughly 3.4% year over year to $9.68 billion. To me, there are a few big picture narratives that outweigh the short term stagnation. So, can t ...

Store Operations - As of March 1, 2024, the company operates 20,022 stores across 48 U.S. states and Mexico, with the first stores in Mexico opening in 2023[10] - The company achieved a net store increase of 882 in 2023, bringing the total to 19,986 stores by the end of the year[25] - The average selling space of new store formats is approximately 8,500 to 9,500 square feet, with 80% of stores located in towns of 20,000 or fewer people[24] - The company operated 19,986 stores as of February 2, 2024, with a significant concentration in the southern and eastern United States[280] - The company has 18 distribution centers for non-refrigerated products and 10 cold storage distribution centers as of February 2, 2024[280] Sales and Revenue - Consumables accounted for 81.0% of net sales in 2023, up from 79.7% in 2022 and 76.7% in 2021, indicating a growing focus on this category[23] - Net sales for the year ended February 2, 2024, reached $38,691,609, an increase from $37,844,863 in the previous year, representing a growth of 2.2%[269] - Gross profit decreased to $11,719,024 from $11,820,098, reflecting a decline of 0.9% year-over-year[269] - Operating profit fell to $2,446,300, down 26.5% from $3,328,302 in the prior year[269] - Net income for the year was $1,661,274, a decrease of 31.2% compared to $2,415,989 in the previous year[269] - Basic earnings per share decreased to $7.57 from $10.73, a decline of 29.9% year-over-year[269] Strategic Initiatives - The company has identified substantial growth opportunities, including the pOpshelf concept and international expansion in Mexico, which began in 2023[19] - The company’s strategic initiatives include enhancing distribution efficiency and reducing inventory levels to improve profitability and cash generation[6] - The company is moving forward with plans to build or lease new distribution facilities to support growth objectives[86] Competition and Market Environment - The company faces intense competition in the basic discount consumer goods market, competing with major retailers such as Walmart, Target, and Kroger, which may have greater resources[32] - The retail business is highly competitive, with significant pressure on pricing, merchandise quality, and customer service, which may lead to lower margins and reduced profitability[61] - The ability to effectively compete will depend on the execution of compelling and cost-effective strategies[63] Inventory Management - As of February 2, 2024, inventory balance represented approximately 49% of total assets, highlighting the importance of efficient inventory management for profitability[71] - In 2023, inventory shrinkage and damages remained significantly elevated, materially impacting financial results[69] Employee and Labor Costs - The company employed approximately 185,800 full-time and part-time employees as of March 1, 2024, with over 70% of store managers promoted from within[41] - The company estimates it invested over four million training hours in employee development in 2023, reflecting its commitment to workforce development[39] - The company invested approximately $150 million in labor compliance-related costs in 2023, which may impact future earnings if minimum wage rates increase significantly[45] - Attracting and retaining qualified employees is critical, with external factors like wage rates and labor laws potentially increasing labor costs[102] Financial Performance - Total assets increased to $30,795,591 from $29,083,367, marking a growth of 5.9%[267] - Total current liabilities rose to $6,725,701, up from $5,887,768, an increase of 14.2%[267] - Retained earnings increased significantly to $2,799,415 from $1,656,140, reflecting a growth of 68.9%[273] - Dividends per share increased to $2.36 from $2.20, representing a growth of 7.3%[268] - Net cash provided by operating activities increased to $2,391,798, up 20.5% from $1,984,555 in the previous year[277] Risks and Challenges - Delays in real estate projects and challenges in expansion could materially impede future growth and profitability[65] - Increased costs due to inflation and higher interest rates have negatively impacted projected new store returns and influenced 2024 growth plans[66] - Disruptions in the distribution network or transportation costs could adversely affect sales and profitability[82] - The company faces risks from natural disasters, political unrest, and global events that could disrupt operations and adversely affect financial performance[92] - Long-term impacts of climate change may affect the availability and cost of products, which could disrupt operations and financial performance[94] Compliance and Regulatory Issues - The company is exposed to significant compliance costs due to changing laws and regulations, which may materially increase operational expenses[112] - The anticipated regulatory changes regarding overtime exemptions could lead to increased labor costs and negatively affect operating results[112] - Legal proceedings may adversely affect the company's reputation and financial condition, with potential liabilities being difficult to quantify[113] Advertising and Marketing - Advertising costs were $130.6 million in 2023, $126.0 million in 2022, and $117.2 million in 2021, with vendor funding offsetting reported expenses by $35.7 million in 2023[314] Tax and Financial Liabilities - The effective income tax rate for 2023 was 21.6%, down from 22.5% in 2022, reflecting a decrease of 0.9 percentage points[329] - The provision for income taxes in 2023 totaled $458.2 million, a decrease from $700.6 million in 2022[328] - The company reported a net deferred tax liability of $1,133.8 million as of February 2, 2024, compared to $1,060.9 million as of February 3, 2023[331]

Editor's note: Seeking Alpha is proud to welcome The Antagonist Investor as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Brandon Bell Dollar General: a leading retailer, yet still trading at a large discount In this article, I will discuss what Dollar General (NYSE:DG) is doing to improve operating performance, latest trends and what the market seems to b ...