Dollar General (DG) Tops Q3 EPS by 7c

Dollar General (NYSE: DG) reported Q3 EPS of $2.08, $0.07 better than the analyst estimate of $2.01. Revenue for the quarter came in at $8.5 billion versus the consensus estimate of $8.48 billion.

For fiscal year 2021, the Company now expects the following:

Net sales growth of approximately 1.0% to 1.5%; compared to its previous expectation in the range of 0.5% to 1.5%.
Same-store sales decline of approximately 3.0% to 2.5%, which reflects growth of approximately 13% to 14% on a two-year stack basis4; compared to its previous expectation of a decline of 3.5% to 2.5%.
Diluted EPS in the range of $9.90 to $10.20, which reflects a compound annual growth rate in the range of 22% to 24% (or in the range of approximately 21% to 23% compared to 2019 Adjusted diluted EPS) over a two-year period5; compared to its previous expectation in the range of $9.60 to $10.20.

This Diluted EPS guidance assumes an effective tax rate of approximately 22%, compared to its previous expectation in the range of 22% to 22.5%.

The Company continues to expect capital expenditures, including those related to investments in the Company’s strategic initiatives, in the range of $1.1 billion to $1.2 billion.

In addition, the Company continues to expect share repurchases of approximately $2.4 billion, and is reiterating its plans to execute 2,900 real estate projects in fiscal year 2021, including 1,050 new store openings, 1,750 store remodels, and 100 store relocations.

4 Same-store sales on a two-year stack basis represents the sum of actual 2020 same-store sales and the corresponding low and high ends of the 2021 guidance range.

5 Two-year compound annual growth rates utilize 2019 diluted EPS and 2019 Adjusted diluted EPS (see “Non-GAAP Disclosure” herein) as the base.

Fiscal Year 2022 Store Growth Outlook

For fiscal year 2022, the Company plans to execute 2,980 real estate projects, including 1,110 new store openings, 1,750 remodels, and 120 store relocations.

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

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