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Dollar General Updates FY21 Outlook; Q3 Comps. Down 0.6%

Dollar General Corporation (DG) updated its guidance issued on August 26, 2021 as a result of its strong results in the first three quarters of the year. For fiscal year 2021, the company now expects: earnings per share in the range of $9.90 to $10.20, compared to its previous expectation in the range of $9.60 to $10.20. Analysts polled by Thomson Reuters expect the company to report profit per share of $10.20. Analysts' estimates typically exclude special items.

For fiscal 2021, same-store sales are now expected to decline approximately 3.0% to 2.5%; compared to its previous expectation of a decline of 3.5% to 2.5%. Net sales growth is projected to be approximately 1.0% to 1.5%; compared to its previous
expectation in the range of 0.5% to 1.5%. The company continues to expect share repurchases of approximately $2.4 billion.

Third quarter net income was $487.0 million, a decrease of 15.2% from a year ago. EPS decreased 10.0% to $2.08 from $2.31. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $2.01, for the quarter.

Net sales increased 3.9% to $8.5 billion. Analysts on average had estimated $8.49 billion in revenue. The company said the increase in net sales was primarily driven by positive sales contributions from new stores, partially offset by a slight decline in same-store sales and the impact of store closures. Same-store sales decreased 0.6%, driven by a decline in customer traffic, partially offset by an increase in average transaction amount.

On November 30, 2021, the company's Board declared a quarterly cash dividend of $0.42 per share, payable on or before January 18, 2022 to shareholders of record on January 4, 2022. On December 1, 2021, the company's Board increased the authorization
under the share repurchase program by $2.0 billion.

Shares of Dollar General Corp. were down 2% in pre-market trade on Thursday.

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