Dollar General (NYSE: DG) reported Q1 EPS of $2.56, $0.86 better than the analyst estimate of $1.70. Revenue for the quarter came in at $8.45 billion versus the consensus estimate of $7.4 billion.

• Same-Store Sales Increased 21.7%

Fiscal Year 2020 Update

As noted above, the Company realized a significant sales benefit in the first quarter of the fiscal year as a result of COVID-19. In addition, since the end of the first quarter, the Company has continued to experience elevated demand in its stores, albeit with slightly more variability and some moderation in recent days. As a result, through May 26, 2020, same-store sales have increased approximately 22% as compared to the comparable period in the 2019 fiscal year.

Due to the significant uncertainty that continues to exist around the severity and duration of the COVID-19 pandemic, including its impact on the U.S. economy, consumer behavior and the Company’s business, there is a lack of visibility for the remainder of 2020 with many unknowns. As a result, it is difficult to predict specific outcomes. While the Company expects it will exceed the fiscal 2020 net sales, same-store sales and diluted EPS guidance that was issued on March 12, 2020, the Company is not able to forecast the extent of such upside for the reasons mentioned above and accordingly is withdrawing the guidance issued on March 12, 2020.

However, for fiscal year 2020, the Company continues to plan for:

• Capital expenditures in the range of $925 million to $975 million, including those related to investments in the Company’s strategic initiatives
• Approximately 2,600 real estate projects, including 1,000 new store openings, 1,500 mature store remodels, and 80 store relocations.

In addition, the Company currently intends to resume share repurchase activity as soon as management determines it is prudent and advisable to do so, which may be as early as the 2020 second quarter.

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