Dollar(US:DG)2024-08-29 10:52Sales Performance - Net sales increased 4.2% to $10.2 billion in Q2 2024 compared 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 $10,210,361, an increase from $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 $16,608,067, up 7.1% from $15,504,504 in the previous year [27]. Profitability - Operating profit decreased 20.6% to $550.0 million in Q2 2024 from $692.3 million in Q2 2023 [4]. - Net income for Q2 2024 was $374.2 million, a decrease of 20.2% compared to $468.8 million in Q2 2023, with diluted EPS falling to $1.70 from $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 $549,962, representing 5.39% of net sales, down from $692,314 or 7.07% in the prior year [22]. - Net income for the quarter was $374,190, a decline from $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 $737,507, down from $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 $68,130 from $84,337, reflecting a decline of about 19.23% year-over-year [22]. - Cash paid for interest decreased to $167,463 from $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 $5.50 and $6.20, reduced from the previous range of $6.80 to $7.55 [11]. Capital Expenditures and Store Growth - Capital expenditures for fiscal year 2024 are expected to be between $1.3 billion and $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 $31,813,765, an increase from $30,395,557 year-over-year [20]. - Current liabilities increased to $7,141,187 from $6,033,922 in the previous year, reflecting a rise of approximately 18.43% [20]. - Shareholders' equity rose to $7,260,238, up from $6,297,705, indicating a growth of about 15.29% [20]. - Cash and cash equivalents at the end of the period increased to $1,222,691 from $353,018, showing a substantial improvement in liquidity [25]. Dividends - The company declared a quarterly cash dividend of $0.59 per share, payable on or before October 22, 2024 [9]. Inventory and Sales Trends - Merchandise inventories decreased to $7,000,569 from $7,531,459, a reduction of approximately 7.06% [20]. - The company reported a decrease in home products sales by 8.5% to $959,014 for the 26 weeks ended August 2, 2024, compared to $1,047,834 in the previous year [27].