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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Cargill, Inc., a privately held food company, is recalling certain chocolate products containing recalled Jif peanut butter due to the potential for salmonella contamination, the U.S. Food and Drug Administration said. The recall involves 795, 8-ounce boxes of Wilbur brand products, such as Milk and Dark Chocolate Covered Peanut Butter Ritz Crackers, Peanut Butter Meltaways... The U.S. Food and Drug Administration approved Regeneron Pharmaceuticals, Inc.'s Dupixent (dupilumab) to treat eosinophilic esophagitis or EoE, a chronic immune disorder. It is the first FDA approval to treat EoE in adults and pediatric patients 12 years and older weighing at least 40 kilograms. Food products maker J. M. Smucker Co. has recalled select Jif peanut butter products sold in the United States due to potential Salmonella contamination, the U.S. Food and Drug Administration said. The recall involves various creamy, crunchy, natural, no added sugar, and reduced fat peanut butter, among others with lot codes 1274425 - 2140425.
Follow RTT