Dollar General 1Q Earnings Miss Estimates: Comparable Sales +1.6%, EPS $2.34 vs. $2.41 y/y

• Dollar General‘s 1Q comparable sales missed estimates, increasing by only 1.6% compared to the estimated 3.81%.
• Earnings per share (EPS) was $2.34, a decrease from the previous year’s $2.41.
• Net sales increased by 6.8% year-over-year to $9.34 billion, missing estimates of $9.5 billion.
• Gross margin was 31.6%, which is higher than the previous year’s 31.3%, but lower than the estimated 31.1%.
• SG&A as a percentage of revenue was 23.7%, higher than the previous year’s 22.8%, and the estimated 22.9%.
• 190 new stores were added, and square footage growth was 6%, higher than the previous year’s 5.8%.
• Operating profit was $740.9 million, a decrease of 0.7% from the previous year, and lower than the estimated $763.7 million.
• Dollar General‘s CEO expressed confidence in the company’s ability to deliver strong growth in the years ahead, despite the near-term pressure.
• Analysts’ consensus is 19 buys, 10 holds, and 2 sells.

A look at Dollar General Smart Scores

Dollar General Corporation is a discount retail chain based in the United States. It offers a wide variety of merchandise, including consumable and non-consumable goods, for customers across the country. According to Smartkarma Smart Scores, Dollar General has a long-term outlook that is positive overall, with a score of 4 for Growth and 3 for Momentum. The company also scores 2 for Value and Resilience, and 1 for Dividend.

This indicates that, while Dollar General may not be the most attractive investment in terms of dividends, it is likely to see a steady increase in growth and momentum in the long term. In addition, the company’s value and resilience suggest a strong potential for continued success in the future.

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