DG Earnings: Dollar General Reports Strong Q1 Results

Dollar General Corp. (NYSE:DG) reported strong first-quarter results on Thursday. Even as the discount store retailer’s earnings declined by 29.5% year-over-year to $1.65 per diluted share, they were still above Street estimates of $1.58 per share.

The retailer’s sales increased 6.1% year-over-year to $9.9 billion as compared to analysts’ expectations of $9.89 billion. DG’s increase in net sales was driven by new stores and a 2.4% growth in same-store sales, despite the impact of store closures. The rise in same-store sales was driven by higher customer traffic, partially offset by a lower average transaction amount.

Dollar General Declares a Dividend

The company’s Board of Directors has declared a quarterly cash dividend of $0.59 per share on its common stock, payable on or before July 23 to shareholders of record on July 9, 2024. In addition, DG did not buy back any stock during the first quarter.

Dollar General’s FY24 Financial Guidance

DG has projected same-store sales for the second quarter to increase in a range of low 2% as compared to analysts’ expectations of a rise of 2.25%. The company has forecasted earnings to be between $1.70 and $1.85 per diluted share, as compared with Street estimates of $1.92 per share.

In FY24, the retailer has projected net sales to grow in the range of around 6% to 6.7% while comparable sales are likely to be between 2% and 2.7%. DG estimates diluted earnings in the range of around $6.80 to $7.55 per diluted share.

Is DG a Good Investment?

Analysts remain cautiously optimistic about DG stock, with a Moderate Buy consensus rating based on 11 Buys, nine Holds, and one Sell. Over the past year, DG has declined by more than 25%, and the average DG price target of $159.16 implies an upside potential of 14.3% from current levels. These analyst ratings are likely to change following DG’s Q1 results today.