Dollar General (DG) Tops Q2 EPS by 14c, Updates FY Guidance

Dollar General (NYSE: DG) reported Q2 EPS of $2.69, $0.14 better than the analyst estimate of $2.55. Revenue for the quarter came in at $8.7 billion versus the consensus estimate of $8.56 billion.

• Same-Store Sales Decreased 4.7%; Increased 14.1% on a two-year stack basis1

GUIDANCE:

Dollar General sees FY2021 EPS of $9.60-$10.20, versus the consensus of $10.22.

• Net sales growth of 0.5% to 1.5%; compared to its previous expectation in the range of a 1% decline to an increase of 1%;
• Same-store sales decline of 3.5% to 2.5%, which reflects growth of approximately 13% to 14% on a two-year stack basis3; compared to its previous expectation of a decline of 5% to 3%;
• Diluted EPS in the range of $9.60 to $10.20, which reflects a compound annual growth rate in the range of 20% to 24% (or in the range of approximately 19% to 23% compared to 2019 Adjusted diluted EPS) over a two-year period4; compared to its previous expectation in the range of $9.50 to $10.20
• This Diluted EPS guidance assumes an effective tax rate in the range of approximately 22% to 22.5%, compared to the previous assumption of 22% to 23%
• Share repurchases of approximately $2.4 billion; compared to its previous expectation of approximately $2.2 billion
• Capital expenditures, including those related to investments in the Company’s strategic initiatives, in the range of $1.1 billion to $1.2 billion, compared to its previous expected range of $1.05 billion to $1.15 billion.

For earnings history and earnings-related data on Dollar General (DG) click here.

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