Shifts in Strategy Pay Off for Dollar General in First Quarter 2017
GOODLETTSVILLE, TN – After starting the year with a slew of ambitious and expansive announcements, Dollar General Corporation reported its 2017 first quarter results.
"For the first quarter of 2017, I am pleased with our earnings results which reflect solid management of the business in a difficult retail environment as we overcame our most challenging comparisons from the prior year,” said Todd Vasos, Chief Executive Officer. “Our same-store sales improved as we moved past the delay in income tax refunds and the timing shift of the later Easter holiday. We continue to execute on our focused strategy and implement our operating initiatives which we believe will improve customer traffic and transactions."
Highlights from the company’s financial report included:
- Net sales increased 6.5%, from $5.27 billion in Q1 2016 to $5.61 this quarter
- Same-store sales increased 0.7%
- Diluted earnings per share of $1.02, including approximately $0.01 charge for the early retirement of long-term obligations
- $160 million of capital returned to shareholders in the quarter
The company noted that, for the 52-week fiscal year ending February 2, 2018, GAAP diluted EPS is forecasted to remain consistent with the prior guidance range of $4.25 to $4.50.
The company also noted that its recently enacted plans to acquire 322 locations in 36 states has resulted in an increase to the company’s prior guidance, and Dollar General is now looking to add approximately 290 new stores in addition to the 1,000 stores it had previously anticipated.
The company’s same-store sales guidance will remain unchanged, but as a result of the new acquisition, net sales are forecasted to increase approximately five to seven percent as compared with the prior guidance range of four to six percent and capital expenditures for fiscal 2017 are expected to be in the range of $715 million to $765 million as compared with the prior guidance range of $650 million to $700 million.
For more details, view Dollar General’s press release here.