- Earnings Per Share (EPS): Dollar General reported EPS of $1.65, beating estimates of $1.57 but down from $2.34 year over year (y/y).
- Net Sales: The company achieved net sales of $9.91 billion, a 6.1% increase year over year, slightly above the $9.88 billion estimate.
- Comparable Sales: Comparable sales grew by 2.4%, compared to 1.6% a year ago and the estimate of 1.66%.
- Gross Margin: The gross margin was 30.2%, down from 31.6% y/y but met the estimate of 30.2%.
- SG&A as Percentage of Revenue: Selling, General, and Administrative expenses were 24.7% of revenue, higher than 23.7% y/y and the estimate of 24.5%.
- Operating Profit: Operating profit stood at $546.1 million, a decline of 26% y/y, though above the $528.3 million estimate.
- Future Projections: For the quarter ending August 2, 2024, the company expects same-store sales growth in the low 2% range and diluted EPS between $1.70 and $1.85.
- CEO Statement: Todd Vasos, CEO, expressed satisfaction with the initial 2024 results, highlighting strong customer traffic growth and market share gains.
- Back to Basics Strategy: Dollar General continues to execute its “Back to Basics” strategy, focusing on value and convenience to resonate with customers.
- Challenges: The company is facing shrink and sales mix challenges but is actively working to mitigate their impact.
- Financial Guidance: The company is reiterating its full-year financial guidance, aiming for consistent, strong financial performance.
- Ratings: The company’s stock has received 14 buys, 16 holds, and 1 sell rating from analysts.
Dollar General on Smartkarma
Analyst coverage of Dollar General on Smartkarma reveals varying sentiments and insights from top independent analysts. Baptista Research delves into Dollar General‘s performance, noting a decrease in sales in Q4 2023, partially offset by market share growth in consumable and nonconsumable products. The research evaluates factors influencing the company’s future price and conducts an independent valuation using a Discounted Cash Flow methodology.
On the other hand, MBI Deep Dives discusses Dollar General‘s stock reaction to recent earnings, highlighting a volatile day where the stock initially surged by ~6% pre-market but ended 5% down. Despite the erratic stock price movements, the analyst remains optimistic, suggesting that the worst days for Dollar General may be behind it.
A look at Dollar General Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Dollar General, the company shows a promising outlook for the long term. With a Momentum score of 4, Dollar General demonstrates strong positive price momentum which could indicate a potential for future growth. Additionally, the company scores well in Dividend and Growth with scores of 3, showcasing stability and room for expansion in its operations. Although Value and Resilience are rated lower at 2, Dollar General‘s overall performance across these key factors suggests a favorable position moving forward.
Dollar General Corporation, a discount retail chain operating in various regions of the United States, offers a wide range of products from consumables to seasonal items. With a balanced performance on the Smartkarma Smart Scores, particularly excelling in Momentum, Dividend, and Growth, Dollar General appears to be strategically positioned for sustainable growth and potential shareholder returns in the foreseeable future. Their extensive product offerings and established market presence contribute to a solid foundation for continued success in the retail sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
