Dollar General Corp. (NYSE:DG) stock fell 2.23% (As on August 26, 11:30:14 AM UTC-4, Source: Google Finance) after the company lifted its annual comparable sales forecast, encouraged by Americans flocking to discount store chains for everything from groceries to household supplies in the face of higher inflation. Dollar General said same-store sales rose 4.6% in the second quarter, beating analysts’ estimate for a 3.9% increase, according to Refinitiv IBES data. The company also updated its plans for real estate projects for fiscal year 2022, citing ongoing delays in permitting and the delay of construction materials related to new store openings. It now expects to execute 1,010 to 1,060 new stores, approximately 1,795 remodels and about 125 store relocations. Previously, the company’s plans called for expansion to 1,110 new stores, 1,750 remodels, and 120 store relocations. Dollar General reported net income of $678 million for the quarter ended July 29, compared to $637 million, in the year-ago quarter. During the second quarter, the company opened 227 new stores, remodeled 533 stores and relocated 30 stores. In July, Dollar General announced plans to build three new distribution centers.
DG in the second quarter of FY 22 has reported the adjusted earnings per share of $2.98, beating the analysts’ estimates for the adjusted earnings per share of $2.93. The company had reported the adjusted revenue growth of 9 percent to $9.4 billion in the second quarter of FY 22. Gross profit as a percentage of net sales was 32.3% in the second quarter of 2022 compared to 31.6% in the second quarter of 2021, an increase of 69 basis points.
The retailer, which operates more than 18,000 stores across the United States, now expects fiscal 2022 same-store sales to rise 4% to 4.5%, compared with its prior forecast for 3% to 3.5% growth. creation.”
Dollar General raised its full-year sales guidance. It now expects full-year sales to rise about 11%, compared with its prior guidance of 10% to 10.5%. The company still sees full-year earnings per share growth of 12% to 14%.
Additionally, the company has declared a quarterly cash dividend of $0.55 per share on the Company’s common stock, payable on or before October 18, 2022 to shareholders of record on October 4, 2022.
On the other hand, Dollar General CFO John Garratt has been promoted and given the additional title of president, effective September 1, 2022. As president, Garratt will add responsibilities for the company’s strategic initiative relating to healthcare and its international expansion to Mexico. He will retain his role as CFO.