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Dollar General Lowers FY18 Outlook - Quick Facts

While reporting its third-quarter financial results today, Dollar General Corp. (DG) on Tuesday lowered its financial outlook for fiscal 2018, citing greater-than-anticipated expenses in the second half of 2018 due to the third-quarter hurricanes and other disasters.

For fiscal 2018, Dollar General now expects earnings per share to be $5.85 to $6.05, down from the prior range of $5.95 to $6.15 per share.

The revised earnings per share guidance assumes an effective tax rate in the range of 21 percent to 22 percent, compared with the lower end of the 22 percent to 23 percent range that the company previously provided.

The company now expects fiscal 2018 net sales growth to be approximately 9.0 percent, compared to the previous range of 9 percent to 9.3 percent, and expects same-store sales growth to be in the middle of the previous range of mid-to-high two percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $6.11 per share for the year on revenues of $25.56 billion. Analysts' estimates typically exclude special items.

"In total, the impact to third quarter EPS was an estimated $0.05 per diluted share and we expect to see an additional estimated $0.04 impact on our fourth quarter diluted EPS. We have adjusted our full-year outlook to reflect the estimated $0.09 impact of these events, ongoing transportation cost pressures and year-to-date results," said John Garratt, Dollar General's chief financial officer.

In addition, Dollar General expects share repurchases for fiscal 2018 to be a minimum of $850 million, and narrowed its expectations for capital expenditures for the year to a range of $725 million to $775 million, compared to its previous range of $725 million to $800 million.

However, the company reiterated its plans to execute approximately 2,000 real estate projects in the year, including 900 new store openings, 1,000 mature store remodels, and 100 store relocations.

For the 52-week fiscal year ending January 31, 2020, or fiscal year 2019), the company plans to execute approximately 2,075 real estate projects, including 975 new store openings, 1,000 mature store remodels, and 100 store relocations.

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