Dollar General Corporation Reports Q3 Earnings

Dollar General Corporation recently reported its third-quarter earnings, surpassing revenue expectations but falling short in earnings.

Key Financial Highlights

• Quarter Ended: November 1, 2024

• Revenue: $10.2 billion

  • Beat analyst consensus of $10.14 billion
  • 5% increase from $9.7 billion in Q3 last year
  • Same-store sales grew 1.3% YoY, reflecting higher average transaction amounts and customer traffic.

• Adjusted EPS: $0.89

  • Missed analyst estimate of $0.95
  • 29.4% decrease from $1.26 in the same quarter last year
  • The decline primarily attributed to $32.7 million in hurricane-related expenses.

CEO Todd Vasos commented: "We are pleased with our team's execution in the third quarter, particularly in light of multiple hurricanes that impacted our business."

Future Guidance

• Fiscal Year 2024:
  • Updated net sales growth forecast: 4.8% to 5.1% (previously 4.7% to 5.3%)
  • Same-store sales growth projection narrowed to 1.1% to 1.4% (previously 1.0% to 1.6%)
  • Anticipated EPS: $5.50 to $5.90 (analyst consensus: $5.82)

Expansion Plans

Dollar General plans to significantly grow its presence in fiscal year 2025, targeting the opening of approximately 575 new stores in the U.S.