Dollar General Stock Falls As FY21 EPS Outlook Misses Consensus

Dollar General Corp DG reported a second-quarter FY21 sales decline of 0.4% year-on-year, to $8.65 billion, beating the analyst consensus of $8.59 billion.
Same-store sales decreased 4.7% due to lower customer traffic. Same-store sales increased 14.1% on a two-year stack basis.
The company attributed the lower net sales to the decline in same-store sales and the impact of store closures.
The gross profit margin for the quarter decreased 80 basis points Y/Y to 31.6%.
The operating margin was 9.8%, and operating income for the quarter fell 18.5% to $849.6 million.
The company held $313.7 million in cash and equivalents as of July 30, 2021.
Net cash provided by operating activities for the six months totaled $1.3 billion.
Adjusted EPS of $2.69 beat the analyst consensus of $2.57.
Dollar General's Board declared a quarterly cash dividend of $0.42 per share, payable on or before October 19, 2021, to shareholders of record on October 5, 2021.
Outlook: Dollar General sees FY21 sales growth of 0.5% - 1.5% (prior 1% decline - 1% growth). This represents sales of $33.91 billion - $34.25 billion versus the consensus of $34.11 billion.
Same-store sales decline of 3.5%-2.5% (prior decline of 5%-3%).
The company expects FY21 EPS of $9.60 - $10.20 (prior $9.50 - $10.20) versus the consensus of $10.22.
Price Action: DG shares are trading lower by 2.87% at $228.00 on the last check Thursday.

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