Dollar General Corp. (DG, Financial), a major U.S. discount retailer, said the company completed its 28th consecutive year of positive same-store sales growth.
Brief summary of earnings
The Tennessee-based company reported comparable sales growth of 3.3% for the quarter ending Feb. 2, driven primarily by higher average transaction amounts per customer. Diluted earnings per share of $2.63 increased 76.5% from the prior-year quarter while net sales increased 2%.
CEO Todd Vasos said Dollar General opened “a record 1,315 new stores” throughout the year, contributing to same-store sales growth of 2.7%. Sales from consumables and seasonal categories contributed most to the strong comp sales.
Company offers strong earnings outlook for 2018
Dollar General expects fiscal 2018 net sales to increase 9%, approximately 2.2% higher than the net sales growth form the prior year. The company also expects diluted earnings between $5.95 and $6.15 per share, which represents an increase between 30 cents and 50 cents from the prior-year earnings.
GuruFocus ranks Dollar General’s profitability 8 out of 10, driven by several factors, including consistent revenue growth and a strong Piotroski F-score of 7. The company’s margins and returns outperform over 85% of global competitors; additionally, Dollar General has returns near a 10-year high and a GuruFocus business predictability rank of 3.5 stars.
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Disclosure: No positions.
