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Dollar General Q2 Earnings Preview

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Dollar General Corp. (DG), one of the largest discount retailer in the US, is slated to report its second quarter results Tuesday.

Analysts polled by Thomson Reuters expect the company to have earned $0.38 per share on revenues of $3.22 billion in the second quarter.

The retailer had reported nearly 64% growth in profit in the immediately preceding first quarter, helped primarily by improved customer traffic and higher gross margins.

The company's first quarter net earnings were $0.39 per share and revenues were $3.11 billion. Same-store sales - a metric used by retailers to measure performance of stores open for at least one year - grew 6.7% in the first quarter, with customer traffic and average transaction amount contributing to the growth.

While announcing its first quarter results, the dollar store chain raised its adjusted earnings guidance for the full year to a range between $1.62 and $1.69 per share, up from its earlier outlook of between $1.55 and $1.63 per share. Analysts expect the company to earn $1.72 per share for the year.

At that time, it also reaffirmed its full-year sales growth guidance range of 8% to 10%, including a 4% to 6% rise in same-store sales.

In February, Dollar General said it plans to open approximately 600 new stores and to remodel or relocate a total of nearly 500 stores in the full year.

The Goodlettsville, Tennessee-based company sells products from America's most-trusted manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg's, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola, through its 9,000 stores in 35 states.

Earlier this month, Dollar General reportedly began selling beer and wine in some of its stores in the Southeast, which could help drive its store traffic.

Among peers, Dollar Tree, Inc. (DLTR) recently reported a 37% year-over-year increase in profit for the second quarter, boosted by higher operating margins and sales growth amid better store traffic. The Chesapeake, Virginia-based operator of discount variety stores selling everything for $1 or less also raised its full year adjusted earnings forecast and sales outlook.

In Monday's regular trading session, DG closed trading at $27.38 per share on the NYSE. In the past 52-week period, its shares have traded in a range of $21.30 to 31.41 per share, with three-month average volume of 1.06 million.

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