- Dollar General Corp DG reported third-quarter FY22 sales growth of 11.1% year-on-year to $9.46 billion, beating the consensus of $9.42 billion.
- Same-store sales increased 6.8% versus last year. Positive sales contributions from new stores and growth in same-store sales drove the top-line growth.
- Gross profit margin for the quarter decreased 27 basis points Y/Y to 30.5%. Operating margin was 7.7%, and operating income for the quarter rose 10.5% to $735.5 million.
- The company held $362.7 million in cash and equivalents as of October 28, 2022. Year-to-date cash flow from operations totaled $1.2 billion.
- EPS of $2.33 missed the analyst consensus of $2.53.
- As of October 28, 2022, total merchandise inventories, at cost, were $7.1 billion, an increase of 28.4% on a per-store basis.
- The total remaining authorization for future repurchases was $2.5 billion at the Q3 end.
- On November 30, 2022, the company’s board declared a quarterly cash dividend of $0.55 per share on its common stock, payable on or before January 17, 2023, to shareholders of record on January 3, 2023.
- Outlook: Dollar General sees Q4 EPS of $3.15 - $3.30 versus an estimate of $3.67.
- The company expects Q4 same-store sales growth of about 6% - 7%.
- The company plans to execute 3,170 real estate projects in the U.S. in FY23, including 1,050 new store openings, 2,000 remodels, and 120 store relocations.
- It continues to expect FY22 sales growth of approximately 11%.
- It sees EPS growth of 7% - 8% for FY22 compared to its previous expectation of 12% - 14%.
- Price Action: DG shares are trading lower by 9.22% at $232.10 on the last check Thursday.
- Photo Via Company
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