Dollar General Corporation Reports Second Quarter 2024 Results
Dollar General (NYSE: DG) reported its fiscal 2024 second quarter results, showing net sales increase of 4.2% to $10.2 billion and same-store sales growth of 0.5%. However, the company faced challenges with operating profit decreasing 20.6% to $550.0 million and diluted EPS declining 20.2% to $1.70. The company updated its fiscal year 2024 guidance, lowering expectations for net sales growth and same-store sales growth. Dollar General now projects diluted EPS in the range of $5.50 to $6.20, down from the previous estimate of $6.80 to $7.55. Despite these challenges, the company remains focused on its 'Back to Basics' plan and is taking action to enhance its value offering and in-store experience.
Dollar General (NYSE: DG) ha reso noti i risultati del secondo trimestre del suo anno fiscale 2024, evidenziando un aumento delle vendite nette del 4,2% a 10,2 miliardi di dollari e una crescita delle vendite comparabili dello 0,5%. Tuttavia, l'azienda ha affrontato delle sfide, con un profitto operativo che è diminuito del 20,6% a 550,0 milioni di dollari e un utile per azione diluito in calo del 20,2% a 1,70 dollari. L'azienda ha aggiornato le sue previsioni per l'anno fiscale 2024, abbassando le aspettative per la crescita delle vendite nette e delle vendite comparabili. Dollar General prevede ora un utile per azione diluito compreso tra 5,50 e 6,20 dollari, rispetto alla precedente stima di 6,80 a 7,55 dollari. Nonostante queste difficoltà, l'azienda rimane concentrata sul suo piano 'Back to Basics' e sta adottando misure per migliorare la sua proposta di valore e l'esperienza in negozio.
Dollar General (NYSE: DG) informó sus resultados del segundo trimestre del año fiscal 2024, mostrando un aumento en las ventas netas del 4,2% a 10,2 mil millones de dólares y un crecimiento en las ventas en tiendas comparables del 0,5%. Sin embargo, la compañía enfrentó desafíos, con un descenso del 20,6% en el beneficio operativo a 550,0 millones de dólares y una disminución del 20,2% en el EPS diluido a 1,70 dólares. La compañía actualizó su guía para el año fiscal 2024, reduciendo las expectativas de crecimiento de ventas netas y de ventas comparables. Dollar General ahora proyecta un EPS diluido en el rango de 5,50 a 6,20 dólares, por debajo de la estimación anterior de 6,80 a 7,55 dólares. A pesar de estos desafíos, la compañía sigue centrada en su plan 'Back to Basics' y está tomando medidas para mejorar su oferta de valor y la experiencia en tienda.
달러 제너럴(Dollar General, NYSE: DG)은 2024 회계연도 2분기 실적을 발표하면서 순매출이 4.2% 증가한 102억 달러와 같은 점포 매출이 0.5% 성장했다고 밝혔습니다. 그러나 회사는 운영 이익이 20.6% 감소하여 5억 5000만 달러로 떨어졌고, 희석 주당순이익이 20.2% 감소하여 1.70달러로 줄어드는 어려움을 겪었습니다. 회사는 2024 회계연도 전망을 업데이트하여 순매출 성장과 같은 점포 성장에 대한 기대치를 낮췄습니다. 달러 제너럴은 현재 희석 주당순이익을 5.50달러에서 6.20달러 사이로 예상하며, 이전 예상인 6.80달러에서 7.55달러에서 하향 조정했습니다. 이러한 어려움에도 불구하고, 회사는 '기본으로 돌아가기(Back to Basics)' 계획에 집중하고 있으며, 가치 제공과 매장 경험을 향상시키기 위한 조치를 취하고 있습니다.
Dollar General (NYSE: DG) a publié ses résultats pour le deuxième trimestre de son exercice fiscal 2024, montrant une augmentation des ventes nettes de 4,2% à 10,2 milliards de dollars et une croissance des ventes dans les mêmes magasins de 0,5%. Cependant, l'entreprise a rencontré des défis, avec une baisse de 20,6% du bénéfice opérationnel à 550,0 millions de dollars et un bénéfice par action dilué en baisse de 20,2% à 1,70 dollar. L'entreprise a mis à jour ses prévisions pour l'exercice fiscal 2024, abaissant ses attentes de croissance des ventes nettes et des ventes dans les mêmes magasins. Dollar General prévoit désormais un bénéfice par action dilué compris entre 5,50 et 6,20 dollars, contre la précédente estimation de 6,80 à 7,55 dollars. Malgré ces défis, l'entreprise reste concentrée sur son plan 'Back to Basics' et prend des mesures pour améliorer son offre de valeur et l'expérience en magasin.
Dollar General (NYSE: DG) hat seine Ergebnisse für das zweite Quartal des Geschäftsjahres 2024 bekannt gegeben und berichtet von einem Anstieg des Nettoumsatzes um 4,2% auf 10,2 Milliarde Dollar sowie einem Wachstum der vergleichbaren Verkaufszahlen um 0,5%. Das Unternehmen sah sich jedoch Herausforderungen gegenüber, da der Betriebsgewinn um 20,6% auf 550,0 Millionen Dollar zurückging und der verwässerte Gewinn je Aktie um 20,2% auf 1,70 Dollar sank. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2024 aktualisiert und die Erwartungen für das Wachstum des Nettoumsatzes und des vergleichbaren Verkaufswachstums gesenkt. Dollar General prognostiziert nun einen verwässerten EPS zwischen 5,50 und 6,20 Dollar, im Vergleich zu der vorherigen Schätzung von 6,80 bis 7,55 Dollar. Trotz dieser Herausforderungen bleibt das Unternehmen auf seinen 'Back to Basics'-Plan fokussiert und ergreift Maßnahmen zur Verbesserung seines Wertangebots und des Einkaufserlebnisses im Laden.
- Net sales increased 4.2% to $10.2 billion
- Same-store sales grew 0.5%, driven by increased customer traffic
- Year-to-date cash flows from operations reached $1.7 billion
- Opened 213 new stores, remodeled 478 stores, and relocated 25 stores in Q2
- Operating profit decreased 20.6% to $550.0 million
- Diluted EPS decreased 20.2% to $1.70
- Gross profit as a percentage of net sales decreased by 112 basis points to 30.0%
- SG&A expenses as a percentage of net sales increased by 57 basis points to 24.6%
- Lowered fiscal year 2024 guidance for net sales growth, same-store sales growth, and diluted EPS
Insights
Dollar General's Q2 results paint a concerning picture. Net sales increased by
The
The revised guidance, with lowered expectations for net sales growth and EPS, signals ongoing challenges. Investors should closely monitor Dollar General's ability to execute its "Back to Basics" plan and navigate the current economic headwinds.
Dollar General's Q2 results reflect broader trends in the discount retail sector. The slight increase in same-store sales, driven by customer traffic but offset by lower transaction amounts, suggests consumers are seeking value but remain cautious with spending. The growth in consumables sales at the expense of discretionary categories (seasonal, home and apparel) indicates a shift towards essential purchases.
The company's focus on enhancing its value proposition and in-store experience is important in this environment. However, the
Dollar General's performance relative to competitors and its ability to attract and retain budget-conscious shoppers will be critical factors to watch in the coming quarters.
Dollar General's Q2 results and revised guidance offer insights into the broader economic landscape. The company's mention of a "core customer who feels financially constrained" aligns with concerns about consumer spending amidst persistent inflation and economic uncertainty. The shift towards consumables and away from discretionary items suggests consumers are prioritizing essentials.
The pressure on gross margins, partly due to increased markdowns, may indicate broader deflationary pressures in certain retail categories. This could have implications for inflation readings and monetary policy decisions. The company's focus on value and convenience is a strategic response to the current economic environment.
Dollar General's performance in the coming quarters could serve as a barometer for low to middle-income consumer health and overall retail sector trends. Investors should monitor how macroeconomic factors, including interest rates and employment data, impact the company's target demographic and, consequently, its financial performance.
Updates Financial Guidance for Fiscal Year 2024
-
Net Sales Increased
4.2% to$10.2 Billion -
Same-Store Sales Increased
0.5% -
Operating Profit Decreased
20.6% to$550.0 Million -
Diluted Earnings Per Share (“EPS”) Decreased
20.2% to$1.70 -
Year-to-Date Cash Flows From Operations of
$1.7 Billion -
Board of Directors Declares Quarterly Cash Dividend of
$0.59
“We made important progress on our Back to Basics plan in the second quarter,” said Todd Vasos, Dollar General’s chief executive officer. “However, despite advancing several of our operational goals and driving positive traffic growth, we are not satisfied with our financial results, including top line results below our expectations for the quarter.”
“While we believe the softer sales trends are partially attributable to a core customer who feels financially constrained, we know the importance of controlling what we can control. With the evolving retail and consumer landscape in mind, we are taking decisive action to further enhance our value and convenience offering, as well as the in-store experience for our associates and customers.”
“Dollar General has a long history of serving customers in a variety of macroeconomic environments, and we believe the actions we are taking will allow us to further strengthen our position and build on our Back to Basics progress, as we seek to deliver sustainable growth and long-term shareholder value.”
Second Quarter 2024 Highlights
Net sales increased
Gross profit as a percentage of net sales was
Selling, general and administrative expenses (“SG&A”) as a percentage of net sales were
Operating profit for the second quarter of 2024 decreased
Net interest expense for the second quarter of 2024 decreased
The effective income tax rate for the second quarter of 2024 was
The Company reported net income of
Merchandise Inventories
As of August 2, 2024, total merchandise inventories, at cost, were
Capital Expenditures
Total additions to property and equipment in the 26-week period ended August 2, 2024 were
Share Repurchases
In the second quarter of 2024, as planned, the Company did not repurchase any shares under its share repurchase program. The total remaining authorization for future repurchases was
Under the authorization, repurchases may be made from time to time in open market transactions, including pursuant to trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, or in privately negotiated transactions. The timing, manner and number of shares repurchased will depend on a variety of factors, including price, market conditions, compliance with the covenants and restrictions under the Company’s debt agreements, cash requirements, excess debt capacity, results of operations, financial condition and other factors. The authorization has no expiration date. See also “Fiscal Year 2024 Financial Guidance and Store Growth Outlook.”
Dividend
On August 28, 2024, the Company’s Board of Directors declared a quarterly cash dividend of
Fiscal Year 2024 Financial Guidance and Store Growth Outlook
The Company is updating its financial guidance provided on May 30, 2024, primarily to reflect the softer sales trends and related gross margin impacts, which are anticipated to continue through the remainder of the 52-week fiscal year ending January 31, 2025 (“fiscal year 2024”).
The Company now expects the following for fiscal year 2024:
-
Net sales growth in the range of approximately
4.7% to5.3% , compared to its previous expectation of approximately6.0% to6.7% -
Same-store sales growth in the range of approximately
1.0% to1.6% , compared to its previous expectation in the range of2.0% to2.7% -
Diluted EPS in the range of approximately
$5.50 $6.20 $6.80 $7.55 -
The Company now expects an immaterial impact to EPS from incentive compensation expense, compared to its previous expectation of an estimated negative impact to EPS of approximately
$0.50 -
Diluted EPS guidance assumes an effective tax rate of approximately
23% , compared to its previous expectation in the range of approximately22.5% to23.5%
-
The Company now expects an immaterial impact to EPS from incentive compensation expense, compared to its previous expectation of an estimated negative impact to EPS of approximately
The Company continues to expect the following for fiscal year 2024:
-
Capital expenditures, including those related to investments in the Company’s strategic initiatives, in the range of
$1.3 billion $1.4 billion - 2,435 real estate projects, including 730 new store openings, 1,620 remodels, and 85 store relocations
The Company’s financial guidance also continues to assume no share repurchases in fiscal year 2024.
Conference Call Information
The Company will hold a conference call on August 29, 2024 at 9:00 a.m. CT/10:00 a.m. ET, hosted by Todd Vasos, chief executive officer, and Kelly Dilts, chief financial officer. To participate via telephone, please call (877) 407-0890 at least 10 minutes before the conference call is scheduled to begin. The conference ID is 13747555. There will also be a live webcast of the call available at https://investor.dollargeneral.com under “News & Events, Events & Presentations.” A replay of the conference call will be available through September 26, 2024, and will be accessible via webcast replay or by calling (877) 660-6853. The conference ID for the telephonic replay is 13747555.
Forward-Looking Statements
This press release contains forward-looking information within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act. Forward-looking statements include those regarding the Company’s outlook, strategy, initiatives, plans, intentions or beliefs, including, but not limited to, statements made within the quotation of Mr. Vasos, and in the sections entitled “Share Repurchases,” “Dividend,” and “Fiscal Year 2024 Financial Guidance and Store Growth Outlook.” A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as “outlook,” “may,” “will,” “should,” “could,” “would,” “can,” “believe,” “anticipate,” “plan,” “project,” “expect,” “estimate,” “target,” “forecast,” “accelerate,” “predict,” “position,” “assume,” “opportunities,” “prospects,” “investments,” “intend,” “continue,” “future,” “beyond,” “ongoing,” “potential,” “long-term,” “longer term,” “near-term,” “guidance,” “goal,” “outcome,” “uncertainty,” “look to,” “seek,” “move into,” “moving forward,” “looking ahead,” “years ahead,” “subject to,” “committed,” “confident,” “focus on,” or “likely to,” and similar expressions that concern the Company’s outlook, strategies, plans, initiatives, intentions or beliefs about future occurrences or results. These matters involve risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those which the Company expected. Many of these statements are derived from the Company’s operating budgets and forecasts as of the date of this release, which are based on many detailed assumptions and estimates that the Company believes are reasonable. However, it is very difficult to predict the effect of known factors on future results, and the Company cannot anticipate all factors that could affect future results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors. Important factors that could cause actual results to differ materially from the expectations expressed in or implied by such forward-looking statements include, but are not limited to:
- economic factors, including but not limited to employment levels; inflation (and the Company’s ability to adjust prices sufficiently to offset the effect of inflation); pandemics (such as the COVID-19 pandemic); higher fuel, energy, healthcare, housing and product costs; higher interest rates, consumer debt levels, and tax rates; lack of available credit; tax law changes that negatively affect credits and refunds; decreases in, or elimination of, government assistance programs or subsidies such as unemployment and food/nutrition assistance programs, student loan repayment forgiveness and economic stimulus payments; commodity rates; transportation, lease and insurance costs; wage rates (including the heightened possibility of increased federal, and further increased state and/or local minimum wage rates/salary levels); foreign exchange rate fluctuations; measures that create barriers to or increase the costs of international trade (including increased import duties or tariffs); and changes in laws and regulations and their effect on, as applicable, customer spending and disposable income, the Company’s ability to execute its strategies and initiatives, the Company’s cost of goods sold, the Company’s SG&A expenses (including real estate costs), and the Company’s sales and profitability;
- failure to achieve or sustain the Company’s strategies, initiatives and investments, including those relating to merchandising (including those related to non-consumable products), real estate and new store development, international expansion, store formats and concepts, digital, marketing, shrink, damages, sourcing, private brand, inventory management, supply chain, private fleet, store operations, expense reduction, technology, pOpshelf, self-checkout, and DG Media Network;
- competitive pressures and changes in the competitive environment and the geographic and product markets where the Company operates, including, but not limited to, pricing, promotional activity, expanded availability of mobile, web-based and other digital technologies, and alliances or other business combinations;
- failure to timely and cost-effectively execute the Company’s real estate projects or to anticipate or successfully address the challenges imposed by the Company’s expansion, including into new countries or domestic markets, states, or urban or suburban areas;
- levels of inventory shrinkage and damages;
- failure to successfully manage inventory balances and in-stock levels, as well as to predict customer trends;
-
failure to maintain the security of the Company’s business, customer, employee or vendor information or to comply with privacy laws, or the Company or one of its vendors falling victim to a cyberattack (which risk is heightened as a result of political uncertainty involving
China , the conflict betweenRussia andUkraine and the conflict in theMiddle East ) that prevents the Company from operating all or a portion of its business; - damage or interruption to the Company’s information systems as a result of external factors, staffing shortages or challenges in maintaining or updating the Company’s existing technology or developing, implementing or integrating new technology;
- a significant disruption to the Company’s distribution network, the capacity of the Company’s distribution centers or the timely receipt of inventory; increased fuel or transportation costs; issues related to supply chain disruptions or seasonal buying pattern disruptions; or delays in constructing, opening or staffing new distribution centers (including temperature-controlled distribution centers);
-
risks and challenges associated with sourcing merchandise from suppliers, including, but not limited to, those related to international trade (for example, political uncertainty involving
China and disruptive political events such as the conflict betweenRussia andUkraine and the conflict in theMiddle East ); -
natural disasters, unusual weather conditions (whether or not caused by climate change), pandemic outbreaks or other health crises (for example, the COVID-19 pandemic), political or civil unrest, acts of war, violence or terrorism, and disruptive global political events (for example, political uncertainty involving
China , the conflict betweenRussia andUkraine and the conflict in theMiddle East ); - product liability, product recall or other product safety or labeling claims;
- incurrence of material uninsured losses, excessive insurance costs or accident costs;
- failure to attract, develop and retain qualified employees while controlling labor costs (including the heightened possibility of increased federal, and further increased state and/or local minimum wage rates/salary levels, including the effects of regulatory changes related to the overtime exemption under the Fair Labor Standards Act if implemented as currently written) and other labor issues, including employee safety issues and employee expectations and productivity;
- loss of key personnel or inability to hire additional qualified personnel, ability to successfully execute management transitions within the Company’s senior leadership; or inability to enforce non-compete agreements that we have in place with management personnel or enter into new non-compete agreements;
- risks associated with the Company’s private brands, including, but not limited to, the Company’s level of success in improving their gross profit rate at expected levels;
- failure to protect the Company’s reputation;
- seasonality of the Company’s business;
-
the impact of changes in or noncompliance with governmental regulations and requirements, including, but not limited to, those dealing with the sale of products, including without limitation, product and food safety, marketing, labeling or pricing; information security and privacy; labor and employment; employee wages, salary levels and benefits (including the heightened possibility of increased federal, and further increased state and/or local minimum wage rates and the effects of regulatory changes related to the overtime exemption under the Fair Labor Standards Act if implemented as currently written); health and safety; real property; public accommodations; imports and customs; transportation; intellectual property; bribery; climate change; and environmental compliance (including required public disclosures related thereto), as well as tax laws (including those related to the federal, state or foreign corporate tax rate), the interpretation of existing tax laws, or the Company’s failure to sustain its reporting positions negatively affecting the Company’s tax rate, and developments in or outcomes of private actions, class actions, multi-district litigation, arbitrations, derivative actions, administrative proceedings, regulatory actions or other litigation or of inquiries from federal, state and local agencies, regulatory authorities, attorneys general, committees, subcommittees and members of the
U.S. Congress, and other local, state, federal and international governmental authorities; - new accounting guidance or changes in the interpretation or application of existing guidance;
- deterioration in market conditions, including market disruptions, adverse conditions in the financial markets including financial institution failures, limited liquidity and interest rate increases, changes in the Company’s credit profile (including any downgrade to our credit ratings), compliance with covenants and restrictions under the Company’s debt agreements, and the amount of the Company’s available excess capital;
- the factors disclosed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q; and
- such other factors as may be discussed or identified in this press release.
All forward-looking statements are qualified in their entirety by these and other cautionary statements that the Company makes from time to time in its SEC filings and public communications. The Company cannot assure the reader that it will realize the results or developments the Company anticipates or, even if substantially realized, that they will result in the consequences or affect the Company or its operations in the way the Company expects. Forward-looking statements speak only as of the date made. The Company undertakes no obligation, and specifically disclaims any duty, to update or revise any forward-looking statements as a result of new information, future events or circumstances, or otherwise, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.
Investors should also be aware that while the Company does, from time to time, communicate with securities analysts and others, it is against the Company’s policy to disclose to them any material, nonpublic information or other confidential commercial information. Accordingly, shareholders should not assume that the Company agrees with any statement or report issued by any securities analyst regardless of the content of the statement or report. Furthermore, the Company has a policy against confirming projections, forecasts or opinions issued by others. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the Company’s responsibility.
About Dollar General Corporation
Dollar General Corporation (NYSE: DG) is proud to serve as America’s neighborhood general store. Founded in 1939, Dollar General lives its mission of Serving Others every day by providing access to affordable products and services for its customers, career opportunities for its employees, and literacy and education support for its hometown communities. As of August 2, 2024, the Company’s 20,345 Dollar General, DG Market, DGX and pOpshelf stores across
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES |
|||||||||
Condensed Consolidated Balance Sheets |
|||||||||
(In thousands) |
|||||||||
(Unaudited) |
|
|
|||||||
August 2, |
|
August 4, |
|
February 2, |
|||||
2024 |
|
2023 |
|
2024 |
|||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ |
1,222,691 |
$ |
353,018 |
$ |
537,283 |
|||
| Merchandise inventories |
|
7,000,569 |
|
7,531,459 |
|
6,994,266 |
|||
| Income taxes receivable |
|
61,495 |
|
151,730 |
|
112,262 |
|||
| Prepaid expenses and other current assets |
|
439,487 |
|
377,772 |
|
366,913 |
|||
| Total current assets |
|
8,724,242 |
|
8,413,979 |
|
8,010,724 |
|||
| Net property and equipment |
|
6,269,480 |
|
5,624,129 |
|
6,087,722 |
|||
| Operating lease assets |
|
11,220,287 |
|
10,755,172 |
|
11,098,228 |
|||
| Goodwill |
|
4,338,589 |
|
4,338,589 |
|
4,338,589 |
|||
| Other intangible assets, net |
|
1,199,700 |
|
1,199,700 |
|
1,199,700 |
|||
| Other assets, net |
|
61,467 |
|
63,988 |
|
60,628 |
|||
| Total assets | $ |
31,813,765 |
$ |
30,395,557 |
$ |
30,795,591 |
|||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Current portion of long-term obligations | $ |
769,194 |
$ |
- |
$ |
768,645 |
|||
| Current portion of operating lease liabilities |
|
1,425,680 |
|
1,331,433 |
|
1,387,083 |
|||
| Accounts payable |
|
3,869,267 |
|
3,681,634 |
|
3,587,374 |
|||
| Accrued expenses and other |
|
1,064,845 |
|
1,013,594 |
|
971,890 |
|||
| Income taxes payable |
|
12,201 |
|
7,261 |
|
10,709 |
|||
| Total current liabilities |
|
7,141,187 |
|
6,033,922 |
|
6,725,701 |
|||
| Long-term obligations |
|
6,235,166 |
|
7,295,215 |
|
6,231,539 |
|||
| Long-term operating lease liabilities |
|
9,783,954 |
|
9,409,193 |
|
9,703,499 |
|||
| Deferred income taxes |
|
1,138,829 |
|
1,119,114 |
|
1,133,784 |
|||
| Other liabilities |
|
254,391 |
|
240,408 |
|
251,949 |
|||
| Total liabilities |
|
24,553,527 |
|
24,097,852 |
|
24,046,472 |
|||
| Commitments and contingencies | |||||||||
| Shareholders' equity: | |||||||||
| Preferred stock |
|
- |
|
- |
|
- |
|||
| Common stock |
|
192,423 |
|
192,039 |
|
192,206 |
|||
| Additional paid-in capital |
|
3,788,091 |
|
3,724,200 |
|
3,757,005 |
|||
| Retained earnings |
|
3,277,439 |
|
2,380,451 |
|
2,799,415 |
|||
| Accumulated other comprehensive income (loss) |
|
2,285 |
|
1,015 |
|
493 |
|||
| Total shareholders' equity |
|
7,260,238 |
|
6,297,705 |
|
6,749,119 |
|||
| Total liabilities and shareholders' equity | $ |
31,813,765 |
$ |
30,395,557 |
$ |
30,795,591 |
|||
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES |
|||||||||||
Consolidated Statements of Income |
|||||||||||
(In thousands, except per share amounts) |
|||||||||||
(Unaudited) |
|||||||||||
For the Quarter Ended |
|||||||||||
August 2, |
|
% of Net |
|
August 4, |
|
% of Net |
|||||
2024 |
|
Sales |
|
2023 |
|
Sales |
|||||
| Net sales | $ |
10,210,361 |
100.00 |
% |
$ |
9,796,181 |
100.00 |
% |
|||
| Cost of goods sold |
|
7,150,882 |
70.04 |
|
|
6,751,495 |
68.92 |
|
|||
| Gross profit |
|
3,059,479 |
29.96 |
|
|
3,044,686 |
31.08 |
|
|||
| Selling, general and administrative expenses |
|
2,509,517 |
24.58 |
|
|
2,352,372 |
24.01 |
|
|||
| Operating profit |
|
549,962 |
5.39 |
|
|
692,314 |
7.07 |
|
|||
| Interest expense, net |
|
68,130 |
0.67 |
|
|
84,337 |
0.86 |
|
|||
| Income before income taxes |
|
481,832 |
4.72 |
|
|
607,977 |
6.21 |
|
|||
| Income tax expense |
|
107,642 |
1.05 |
|
|
139,142 |
1.42 |
|
|||
| Net income | $ |
374,190 |
3.66 |
% |
$ |
468,835 |
4.79 |
% |
|||
| Earnings per share: | |||||||||||
| Basic | $ |
1.70 |
$ |
2.14 |
|||||||
| Diluted | $ |
1.70 |
$ |
2.13 |
|||||||
| Weighted average shares outstanding: | |||||||||||
| Basic |
|
219,904 |
|
219,403 |
|||||||
| Diluted |
|
220,065 |
|
219,952 |
|||||||
For the 26 Weeks Ended |
|||||||||||
August 2, |
% of Net |
August 4, |
% of Net |
||||||||
2024 |
Sales |
2023 |
Sales |
||||||||
| Net sales | $ |
20,124,382 |
100.00 |
% |
$ |
19,139,013 |
100.00 |
% |
|||
| Cost of goods sold |
|
14,072,754 |
69.93 |
|
|
13,138,853 |
68.65 |
|
|||
| Gross profit |
|
6,051,628 |
30.07 |
|
|
6,000,160 |
31.35 |
|
|||
| Selling, general and administrative expenses |
|
4,955,562 |
24.62 |
|
|
4,566,988 |
23.86 |
|
|||
| Operating profit |
|
1,096,066 |
5.45 |
|
|
1,433,172 |
7.49 |
|
|||
| Interest expense, net |
|
140,563 |
0.70 |
|
|
167,375 |
0.87 |
|
|||
| Income before income taxes |
|
955,503 |
4.75 |
|
|
1,265,797 |
6.61 |
|
|||
| Income tax expense |
|
217,996 |
1.08 |
|
|
282,582 |
1.48 |
|
|||
| Net income | $ |
737,507 |
3.66 |
% |
$ |
983,215 |
5.14 |
% |
|||
| Earnings per share: | |||||||||||
| Basic | $ |
3.35 |
$ |
4.48 |
|||||||
| Diluted | $ |
3.35 |
$ |
4.47 |
|||||||
| Weighted average shares outstanding: | |||||||||||
| Basic |
|
219,826 |
|
219,298 |
|||||||
| Diluted |
|
220,059 |
|
220,029 |
|||||||
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
For the 26 Weeks Ended |
||||||||
August 2, |
|
August 4, |
||||||
2024 |
|
2023 |
||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ |
737,507 |
|
$ |
983,215 |
|
||
| Adjustments to reconcile net income to net cash from operating activities: | ||||||||
| Depreciation and amortization |
|
471,079 |
|
|
410,287 |
|
||
| Deferred income taxes |
|
5,045 |
|
|
58,147 |
|
||
| Noncash share-based compensation |
|
34,641 |
|
|
33,893 |
|
||
| Other noncash (gains) and losses |
|
39,876 |
|
|
57,367 |
|
||
| Change in operating assets and liabilities: | ||||||||
| Merchandise inventories |
|
(23,369 |
) |
|
(817,001 |
) |
||
| Prepaid expenses and other current assets |
|
(75,427 |
) |
|
(78,358 |
) |
||
| Accounts payable |
|
306,290 |
|
|
107,810 |
|
||
| Accrued expenses and other liabilities |
|
109,762 |
|
|
(12,438 |
) |
||
| Income taxes |
|
52,259 |
|
|
(17,613 |
) |
||
| Other |
|
(4,934 |
) |
|
1,412 |
|
||
| Net cash provided by (used in) operating activities |
|
1,652,729 |
|
|
726,721 |
|
||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment |
|
(695,683 |
) |
|
(767,935 |
) |
||
| Proceeds from sales of property and equipment |
|
1,525 |
|
|
3,234 |
|
||
| Net cash provided by (used in) investing activities |
|
(694,158 |
) |
|
(764,701 |
) |
||
| Cash flows from financing activities: | ||||||||
| Issuance of long-term obligations |
|
- |
|
|
1,498,260 |
|
||
| Repayments of long-term obligations |
|
(10,341 |
) |
|
(8,843 |
) |
||
| Net increase (decrease) in commercial paper outstanding |
|
- |
|
|
(1,205,400 |
) |
||
| Borrowings under revolving credit facilities |
|
- |
|
|
500,000 |
|
||
| Repayments of borrowings under revolving credit facilities |
|
- |
|
|
(500,000 |
) |
||
| Costs associated with issuance of debt |
|
- |
|
|
(12,448 |
) |
||
| Payments of cash dividends |
|
(259,482 |
) |
|
(258,885 |
) |
||
| Other equity and related transactions |
|
(3,340 |
) |
|
(3,262 |
) |
||
| Net cash provided by (used in) financing activities |
|
(273,163 |
) |
|
9,422 |
|
||
| Net increase (decrease) in cash and cash equivalents |
|
685,408 |
|
|
(28,558 |
) |
||
| Cash and cash equivalents, beginning of period |
|
537,283 |
|
|
381,576 |
|
||
| Cash and cash equivalents, end of period | $ |
1,222,691 |
|
$ |
353,018 |
|
||
| Supplemental cash flow information: | ||||||||
| Cash paid for: | ||||||||
| Interest | $ |
167,463 |
|
$ |
177,063 |
|
||
| Income taxes | $ |
159,145 |
|
$ |
242,052 |
|
||
| Supplemental schedule of non-cash investing and financing activities: | ||||||||
| Right of use assets obtained in exchange for new operating lease liabilities | $ |
842,846 |
|
$ |
745,786 |
|
||
| Purchases of property and equipment awaiting processing for payment, included in Accounts payable | $ |
123,740 |
|
$ |
171,527 |
|
||
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES |
|||||||||
Selected Additional Information |
|||||||||
(Unaudited) |
|||||||||
Sales by Category (in thousands) |
|||||||||
For the Quarter Ended |
|
|
|||||||
August 2, |
|
August 4, |
|
|
|||||
2024 |
|
2023 |
|
% Change |
|||||
| Consumables | $ |
8,397,217 |
$ |
7,921,622 |
|
6.0 |
% |
||
| Seasonal |
|
1,054,762 |
|
1,076,161 |
|
-2.0 |
% |
||
| Home products |
|
480,223 |
|
516,645 |
|
-7.0 |
% |
||
| Apparel |
|
278,159 |
|
281,753 |
|
-1.3 |
% |
||
| Net sales | $ |
10,210,361 |
$ |
9,796,181 |
|
4.2 |
% |
||
For the 26 Weeks Ended |
|
|
|||||||
August 2, |
|
August 4, |
|
|
|||||
2024 |
|
2023 |
|
% Change |
|||||
| Consumables | $ |
16,608,067 |
$ |
15,504,504 |
|
7.1 |
% |
||
| Seasonal |
|
2,018,276 |
|
2,038,842 |
|
-1.0 |
% |
||
| Home products |
|
959,014 |
|
1,047,834 |
|
-8.5 |
% |
||
| Apparel |
|
539,025 |
|
547,833 |
|
-1.6 |
% |
||
| Net sales | $ |
20,124,382 |
$ |
19,139,013 |
|
5.1 |
% |
||
Store Activity |
|||||||||
For the 26 Weeks Ended |
|||||||||
August 2, |
August 4, |
||||||||
2024 |
2023 |
||||||||
| Beginning store count |
|
19,986 |
|
19,104 |
|
||||
| New store openings |
|
410 |
|
427 |
|
||||
| Store closings |
|
(51 |
) |
(43 |
) |
||||
| Net new stores |
|
359 |
|
384 |
|
||||
| Ending store count |
|
20,345 |
|
19,488 |
|
||||
| Total selling square footage (000's) |
|
154,478 |
|
146,422 |
|
||||
| Growth rate (square footage) |
|
5.5 |
% |
5.9 |
% |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240828246761/en/
Investor Contact:
investorrelations@dollargeneral.com
Media Contact:
dgpr@dollargeneral.com
Source: Dollar General Corporation
FAQ
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