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Dollar(DG) - 2026 Q1 - Quarterly Report
DGDollar(DG)2025-06-03 11:03
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Financial Performance - Net sales for the 13 weeks ended May 2, 2025, increased to 10,435,979,up5.310,435,979, up 5.3% from 9,914,021 in the same period last year[22] - Gross profit for the same period rose to 3,231,288,representingagrossmarginof30.93,231,288, representing a gross margin of 30.9%, compared to 30.2% in the prior year[22] - Net income for the quarter was 391,928, an increase of 7.9% from 363,317inthepreviousyear[22]−Earningspershare(EPS)forthequarterwas363,317 in the previous year[22] - Earnings per share (EPS) for the quarter was 1.78, up from 1.65year−over−year[22]−Consolidatednetincomeforthe13weeksendedMay2,2025,was1.65 year-over-year[22] - Consolidated net income for the 13 weeks ended May 2, 2025, was 391,928 thousand, compared to 363,317thousandforthesameperiodin2024,representinganincreaseof7.9363,317 thousand for the same period in 2024, representing an increase of 7.9%[72] - Cash flows from operating activities rose to 847.2 million in 2025, an increase of 183.3millioncomparedto2024[121]AssetsandLiabilities−Totalcurrentassetsdecreasedto183.3 million compared to 2024[121] Assets and Liabilities - Total current assets decreased to 7,896,303 from 8,163,925attheendofJanuary2025,primarilyduetoareductionincashandcashequivalents[20]−Totalliabilitiesdecreasedto8,163,925 at the end of January 2025, primarily due to a reduction in cash and cash equivalents[20] - Total liabilities decreased to 23,283,998 from 23,719,026,reflectingareductionincurrentliabilities[20]−Cashandcashequivalentsattheendoftheperiodwere23,719,026, reflecting a reduction in current liabilities[20] - Cash and cash equivalents at the end of the period were 850,018, down from 932,576atthebeginningoftheperiod[30]−AsofMay2,2025,theCompany′stotalcurrentandlong−termobligationswere932,576 at the beginning of the period[30] - As of May 2, 2025, the Company's total current and long-term obligations were 5.744 billion, down from 6.238billionasofJanuary31,2025[52]TaxandLegalMatters−Totalreservesforuncertaintaxbenefits,interestexpenserelatedtoincometaxes,andpotentialincometaxpenaltiesamountedto6.238 billion as of January 31, 2025[52] Tax and Legal Matters - Total reserves for uncertain tax benefits, interest expense related to income taxes, and potential income tax penalties amounted to 14.5 million as of May 2, 2025[46] - The effective income tax rate for the 13-week period ended May 2, 2025, was 23.4%, slightly higher than the 23.3% rate for the same period in 2024[48] - The Company expects to reduce its reserve for uncertain tax positions by 3.5millioninthecomingtwelvemonths[47]−Theeffectiveincometaxratefor2025was23.43.5 million in the coming twelve months[47] - The effective income tax rate for 2025 was 23.4%, slightly higher than 23.3% in 2024, primarily due to stock-based compensation[113] - The Company believes that pending legal matters will be resolved without a material adverse effect on its consolidated financial statements[68] Operational Highlights - The company reported a LIFO provision of 12.3 million for the quarter, compared to 10.3millioninthesameperiodlastyear[36]−Operatingleasecostsforthe13−weekperiodsendedMay2,2025,andMay3,2024,were10.3 million in the same period last year[36] - Operating lease costs for the 13-week periods ended May 2, 2025, and May 3, 2024, were 487.9 million and 459.8million,respectively,reflectinganincreaseof6.5459.8 million, respectively, reflecting an increase of 6.5%[51] - The weighted-average remaining lease term for the Company's operating leases was 9.3 years, with a weighted average discount rate of 4.6% as of May 2, 2025[51] - The company opened 156 new stores and remodeled 668 stores in the first quarter of 2025, with plans to open approximately 575 new stores in 2025[92] - The Company operates 20,582 stores across 48 U.S. states and Mexico as of May 2, 2025, maintaining its position as the largest discount retailer in the U.S. by store count[82] Sales and Inventory - Consumables sales reached 8,636,680 thousand, up from 8,210,850thousand,reflectingagrowthof5.28,210,850 thousand, reflecting a growth of 5.2% year-over-year[70] - The percentage of net sales from consumables remained high at 82.76%, reflecting the company's focus on this category[111] - Inventory turnover improved to 4.2 in 2025 from 3.8 in 2024, indicating better inventory management[106] - Total merchandise inventories decreased by 2% in 2025, with apparel and home products both seeing an 8% decline[122] - Inventory represented approximately 46% of total assets as of May 2, 2025, indicating a focus on inventory management[117] Expenses and Dividends - Selling, general and administrative expenses increased by 8.5% to 2.66 billion, impacting overall profitability[109] - Cash dividends paid were 129.8millionin2025,slightlyupfrom129.8 million in 2025, slightly up from 129.7 million in 2024[126] - Dividends paid during the quarter remained stable at 0.59pershare,consistentwiththepreviousyear[22]−Acashdividendof0.59 per share, consistent with the previous year[22] - A cash dividend of 0.59 per share was paid during the first quarter of 2025, with a similar dividend declared for June 2025[76] Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[32] - The company plans to enhance its digital shopping experience and expand same-day home delivery offerings through partnerships with third-party delivery services[90] - The company has approximately 1.38billionavailableunderitscommonstockrepurchaseprogram,whichhasnoexpirationdate[74]−Thecompanyhasaremainingstockrepurchaseauthorizationofapproximately1.38 billion available under its common stock repurchase program, which has no expiration date[74] - The company has a remaining stock repurchase authorization of approximately 1.38 billion but plans no repurchases in 2025[127] - The Company is focused on mitigating the impact of tariffs on consumer behavior and financial results, with no material impact observed in the first quarter of 2025[84]