Dollar General Corp. (NYSE:DG) released its second-quarter results before the opening bell on Thursday, which edged past expectations for both earnings and revenue.
Snapshot of the quarter
The Goodlettsville, Tennessee-based company reported adjusted earnings per share of $1.74 in the second quarter, up 14.5% from the same quarter last year. Revenue was $6.98 billion, reflecting a gain of 8.4% year-over-year. Analysts had anticipated earnings per share of $1.57 on revenue of $6.89 billion.
Comparable store sales inched up 4% in the reported quarter, which was higher than the 2.4% analysts were anticipating. Growth in the average transaction amount as well as customer traffic drove the increase.
"Our results this quarter were fueled by solid execution across many fronts, including category management, merchandise innovation, store operations, and continued progress with our strategic initiatives," CEO Todd Vasos said. "In addition, we remained focused on disciplined cost control, which culminated in another quarter of strong earnings growth."
The consumables category saw sales growth of 8.8% in the second quarter to $5.43 billion. The seasonal category experienced a sales increase of 7.8% to $854.1 million. While home products sales jumped 8.7% to $375.1 million, apparel sales climbed 2.2% to $324.6 million.
For the quarter ended Aug. 2, 2019, the company launched 489 new outlets, modernized 653 stores and repositioned 46 stores. It looks forward to opening approximately 975 new stores, remodeling 1,000 stores and repositioning 100 stores in fiscal 2019.
The discount retailer projects third-quarter earnings per share to be between $1.07 and $1.16. The company is also projecting revenue of $5.66 billion to $5.77 billion.
For fiscal 2019, the company sees adjusted earnings to be in the range of $6.45 to $6.60 per share. While net sales growth is projected to be 8%, comparable-store sales are expected to rise in the low-to-mid 3% range.
Disclosure: I do not hold any position in the stock mentioned.
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