- Dollar General Corp (NYSE:DG) reported first-quarter FY22 sales growth of 4.2% year-on-year to $8.75 billion, beating the consensus of $8.70 billion.
- The net sales increase was primarily driven by positive sales contributions from new stores, partially offset by the slight decline in same-store sales and the impact of store closures.
- Same-store sales decreased 0.1% due to lower customer traffic.
- The gross profit margin for the quarter decreased 151 basis points Y/Y to 31.3%.
- The operating margin was 8.5%, and operating income for the quarter fell 17.9% to $746.2 million.
- The company held $335.6 million in cash and equivalents as of April 29, 2022. Net cash provided by operating activities for the quarter totaled $449.5 million.
- EPS of $2.41 beat the analyst consensus of $2.32.
- Dollar General's Board declared a quarterly cash dividend of $0.55 per share, payable on or before July 19, 2022, to shareholders of record on July 5, 2022.
- Outlook: Dollar General sees FY22 sales growth of 10% - 10.5% (prior view 10%).
- Same-store sales growth of about 3% - 3.5% against the previous expectation of 2.5%.
- The company continues to expect FY22 EPS growth of 12% - 14%.
- Price Action: DG shares are trading higher by 11.1% at $217.00 in premarket on the last check Thursday.
- Photo Via Wikimedia Commons
