Dollar General (DG) Misses Q3 EPS by 4c; Comps Light of Views; Sees FY16 EPS at Low-End of Growth Outlook

December 1, 2016 6:55 AM

(Updated - December 1, 2016 6:58 AM EST)

Dollar General (NYSE: DG) reported Q3 EPS of $0.89, $0.04 worse than the analyst estimate of $0.93. Revenue for the quarter came in at $5.32 billion versus the consensus estimate of $5.37 billion.

Comps fell 0.1 percent, versus a gain of 0.8 percent expected by analysts.

Financial Outlook

On March 10, 2016, the Company stated that it intended to update its diluted EPS guidance for the 53-weeks ending February 3, 2017 (“fiscal 2016”) only if the Company no longer reasonably expects diluted EPS to fall within the 10 percent to 15 percent range outlined in the long-term growth model included in its press release issued on that date. The Company now forecasts diluted EPS growth for fiscal 2016 to be at the low end of the Company’s long-term growth model range of 10 percent to 15 percent. The Company expects the 53rd week to contribute approximately 200 basis points to its net sales performance and continues to estimate a $0.09 per diluted share impact to EPS.

As stated in the March 10, 2016 press release, the Company does not intend, and specifically disclaims any duty, to update its expectations regarding where in the range of guidance fiscal 2016 net sales, same-store sales or diluted EPS may fall, or to update any component of the growth model outlined in that press release, other than the diluted EPS range as specified herein. However, the Company does intend to discuss square footage growth from time to time. For the 52-week period ending February 2, 2018 (“fiscal 2017”), the Company plans to increase square footage growth by approximately 7.5 percent with the opening of approximately 1,000 new stores in addition to remodeling or relocating 900 stores.

The Company continues to use the long-term growth model outlined in its March 10, 2016 press release in discussions of its business, and by doing so the Company does not undertake to update any portion of the growth model. In any given year, one or more key drivers of the model may be outside of the annual targets outlined in such model.

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


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