Dollar General (NYSE: DG) reported Q3 EPS of $1.42, $0.04 better than the analyst estimate of $1.38. Revenue for the quarter came in at $7 billion versus the consensus estimate of $6.92 billion.

• Same-Store Sales Increased 4.6%

GUIDANCE:

Dollar General sees FY2019 EPS of $6.55-$6.65, versus the consensus of $6.61.

For fiscal year 2019, the Company now expects the following:

• Net sales growth in the low 8% range, compared to its previous expectation of approximately 8%
• Same-store sales growth in the mid-to-high 3% range, compared to its previous expectation in the low-to-mid 3% range
• Operating profit growth of approximately 6% to 8%, compared to its previous range of approximately 5% to 7%
• Adjusted operating profit growth, which excludes the impact of the Significant Legal Expenses, of approximately 7% to 9%, compared to its previous range of approximately 6% to 8%2
• Diluted EPS in the range of $6.46 to $6.56, compared to its previous range of $6.36 to $6.51
• Adjusted Diluted EPS, which excludes the after-tax impact of the Significant Legal Expenses, in the range of $6.55 to $6.65, compared to its previous range of $6.45 to $6.602
• Diluted EPS and Adjusted diluted EPS guidance continue to assume an effective tax rate within the range of 22.0% to 22.5%
• Share repurchases of approximately $1.2 billion, compared to its previous expectation of approximately $1.0 billion
• In addition, the Company continues to expect capital expenditures in the range of $775 million to $825 million, including those related to investments in the Company’s strategic initiatives.
• The Company is also reiterating its plans to execute approximately 2,075 real estate projects in fiscal year 2019, including 975 new store openings, 1,000 mature store remodels, and 100 store relocations.

Fiscal Year 2020 Store Growth Outlook

• For the 52-week fiscal year ending January 29, 2021 (“fiscal year 2020”), the Company plans to execute nearly 2,600 real estate projects, including 1,000 new store openings, 1,500 mature store remodels, and 80 store relocations.
• “We are excited to accelerate our real estate growth plans in 2020,” continued Mr. Vasos. “We continue to see a significant number of opportunities to serve more customers and communities with our innovative mix of store formats. The sustained positive results we are seeing from our portfolio of real estate projects further validates our belief that our ongoing investment in high-return real estate projects, along with our strategic initiatives, is the best use of our capital as we look to continue delivering long-term shareholder value.”

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