Dollar(DG)2024-08-29 10:52Sales Performance - Net sales increased 4.2% to 9.8 billion in Q2 2023, driven by new store contributions and same-store sales growth [2]. - Same-store sales rose 0.5% in Q2 2024, attributed to increased customer traffic, despite a decrease in average transaction amounts [2]. - Net sales for the quarter ending August 2, 2024, were 9,796,181 for the same period in 2023, representing a growth of approximately 4.22% [22]. - Consumables sales for the 26 weeks ended August 2, 2024, reached 15,504,504 in the previous year [27]. Profitability - Operating profit decreased 20.6% to 692.3 million in Q2 2023 [4]. - Net income for Q2 2024 was 468.8 million in Q2 2023, with diluted EPS falling to 2.13 [5]. - Gross profit as a percentage of net sales was 30.0% in Q2 2024, down from 31.1% in Q2 2023, reflecting increased markdowns and inventory damages [3]. - Operating profit decreased to 692,314 or 7.07% in the prior year [22]. - Net income for the quarter was 468,835 in the same quarter last year, resulting in a net income margin of 3.66% compared to 4.79% [22]. - Net income for the 26 weeks ended August 2, 2024, was 983,215 for the same period last year, representing a decrease of approximately 25% [25]. Expenses - SG&A expenses as a percentage of net sales increased to 24.6% in Q2 2024 from 24.0% in Q2 2023, driven by higher retail labor and occupancy costs [3]. - Interest expense decreased to 84,337, reflecting a decline of about 19.23% year-over-year [22]. - Cash paid for interest decreased to 177,063 year-over-year, indicating a reduction in interest expenses [25]. Guidance and Expectations - The company expects net sales growth for fiscal year 2024 to be in the range of 4.7% to 5.3%, down from a previous expectation of 6.0% to 6.7% [10]. - Diluted EPS guidance for fiscal year 2024 is now projected to be between 6.20, reduced from the previous range of 7.55 [11]. Capital Expenditures and Store Growth - Capital expenditures for fiscal year 2024 are expected to be between 1.4 billion, with plans for 730 new store openings and 1,620 remodels [11]. - The company opened 410 new stores during the 26 weeks ended August 2, 2024, bringing the total store count to 20,345, an increase of 857 stores year-over-year [28]. - Total selling square footage increased to 154,478,000 square feet, reflecting a growth rate of 5.5% compared to the previous year [28]. Balance Sheet and Liquidity - Total assets as of August 2, 2024, were 30,395,557 year-over-year [20]. - Current liabilities increased to 6,033,922 in the previous year, reflecting a rise of approximately 18.43% [20]. - Shareholders' equity rose to 6,297,705, indicating a growth of about 15.29% [20]. - Cash and cash equivalents at the end of the period increased to 353,018, showing a substantial improvement in liquidity [25]. Dividends - The company declared a quarterly cash dividend of 7,000,569 from 959,014 for the 26 weeks ended August 2, 2024, compared to $1,047,834 in the previous year [27].