Close

Dollar General (DG) Reports In-Line Q2 EPS; Remains Committed to Family Dollar (FDO) Deal

August 28, 2014 7:01 AM EDT

Dollar General (NYSE: DG) reported Q2 EPS of $0.83, in-line with the analyst estimate of $0.83. Revenue for the quarter came in at $4.72 billion versus the consensus estimate of $4.77 billion.

Comps increased 2.1 percent.

As of August 1, 2014, total merchandise inventories, at cost, were $2.79 billion compared to $2.53 billion as of August 2, 2013, an increase of four percent on a per-store basis.

“Dollar General’s second quarter sales trends improved over the first quarter as we grew both customer traffic and average ticket for the 26th consecutive quarter,” said Rick Dreiling, Dollar General’s Chairman and Chief Executive Officer. “Our second quarter same-store sales began very strong with a year over year increase in May of more than 3.5 percent; however, this growth moderated as we moved through June and July given the competitive environment and a consumer who, although resilient in the face of economic uncertainty, remains cautious with her spending. As we enter the third quarter, we are seeing our sales momentum pick back up and expect that momentum to build as our initiatives gain traction with our customers. For the second half of the year, we are well positioned to serve our customers and provide them with the everyday low pricing they count on from us. We remain focused on driving our sales and profitability as we continue to forecast fiscal 2014 adjusted diluted EPS of $3.45 to $3.55 for the full year.

“In regards to our proposal to acquire Family Dollar (NYSE: FDO), we remain firmly committed to the acquisition. The financial benefits of our offer to Family Dollar shareholders are indisputable, and the proposed combination would unlock tremendous value for Dollar General shareholders. We continue to believe the potential antitrust issues are manageable and that our transaction as proposed is both superior and achievable.”

For earnings history and earnings-related data on Dollar General (DG) click here.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings, Guidance, Management Comments, Mergers and Acquisitions, Retail Sales

Related Entities

Earnings, Definitive Agreement