Earnings Review – Dollar General

LONDON, September 10, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings review on Dollar General Corp. (NYSE: DG). The company reported financial results on August 28, 2014 for Q2 FY14 ended August 01, 2014. During Q2 FY14, Dollar General Corp.'s net sales and same-store sales grew 7.5% and 2.1%, respectively on a Y-o-Y basis. Further, Dollar General Corp.'s diluted EPS during Q2 FY14 increased $0.08 from the prior year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview  

Dollar General Corp.'s net sales for Q2 FY14 increased to $4.72 billion, from $4.39 billion in the preceding year quarter. Analysts from Bloomberg anticipated net sales of $4.77 billion for the reported quarter. Dollar General Corp.'s consumables sales increased at a higher rate of 8.3% Y-o-Y compared to non consumables, with significant growth in tobacco products, perishables and candy and snacks. Moreover, the company's home products and apparel sales during the reported quarter grew 7.5% and 6.9%, respectively from the previous year quarter. The free research on DG can be downloaded as in PDF format at:

http://www.Investor-Edge.com/DGFreeReport

The company's net income improved to $251.26 million, or $0.83 per diluted share in Q2 FY14, from $245.48 million, or $0.75 per diluted share in Q2 FY13. The Company's net income came in close quarters with Bloomberg Analysts' net income expectation of $251.64 million, or $0.83 per diluted share for the reported period. Dollar General Corp.'s selling, general and administrative expenses for the quarter came in at $1.03 billion, or 21.7% of the net sales, compared to $964.47 million, or 21.9% of the net sales in Q2 FY13.  However, the company's gross profit, as a % of net sales decreased by 53 basis points to 30.8% in Q2 FY14, from Q2 FY13, primarily on account of increased markdowns, relating to greater promotional activities.

For the six months period ended August 01, 2014, the company repurchased 14.1 million shares of its common stock under its share repurchase program at a total cost of $800 million. Dollar General Corp. has currently suspended its share repurchase program pending the outcome of its proposed transaction to acquire Family Dollar Stores Inc.

Furthermore, the Company has provided its guidance for full year FY14. Total full year sales is forecasted to increase 8.0% to 9.0% from FY13 and same-store sales is expected to grow in the range of 3.0% to 3.5% from the previous year. The company's adjusted diluted EPS for FY14 is expected to be approximately $3.45 to $3.55, and does not include any expenses or reduction in the assumed share repurchases which may occur in connection with the proposal to acquire Family Dollar Stores Inc. Further, the company plans to open approximately 700 new stores and to relocate or remodel approximately 500 stores in 2014.

Rick Dreiling, Chairman, and CEO of Dollar General Corp., said that the company's Q2 sales trends improved over Q1 as both customer traffic and average ticket grew for the 26^th consecutive quarter. He added that the company's second quarter same-store sales began very strong with a year over year increase in May of more than 3.5%; however, the growth moderated in the months of June and July given the competitive environment and consumers who, although resilient in the face of economic uncertainty, remained cautious with their spending.  Commenting on the future outlook, he said that as the company enters the third quarter, it is expecting sales momentum to pick up again and to build on as the company's initiatives gain traction with its customers. Dreiling concluded that for the second half of the year, the company is well positioned to serve its customers and provide them with the everyday low pricing that they expect from Dollar General Corp. Sign up and read the free analyst's notes on DG at:

http://www.Investor-Edge.com/DG-10092014

Stock Performance  

On the day of earnings release, August 28, 2014, shares in Dollar General Corp. advanced 0.78%, ending the session at $64.20. The stock has fallen by 1.22% since then, and on the last trading session, Tuesday, September 09, 2014, it closed at $63.42. The stock vacillated between $62.97 and $64.07 during the trading session. A total of 5.49 million shares were traded, which was below its three months average volume of 6.74 million shares. Over the last one month and from the beginning of 2014, the company's shares have gained 9.25% and 5.14%, respectively. However, the stock has declined 1.64% over the previous three trading sessions. Shares in Dollar General Corp. are trading above their 50-day and 200-day moving averages of $58.85 and $58.21, respectively. Furthermore, the stock traded at a PE ratio of 19.22 and has a Relative Strength Index (RSI) of 61.52. Visit Investor-Edge and access the latest research on DG at:

http://www.Investor-Edge.com/DGEarningsCoverage

Sneak Peek to Corporate Insider Trading  

In the last one month, Dollar General Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on DG is available at:

http://www.Investor-Edge.com/DGInsiderTrading

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EDITOR'S NOTES:

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