Quarterly Results and Outlook - Research Report on Dollar General

NEW YORK, September 23, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Dollar General Corporation (NYSE: DG). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/DG.pdf

Highlights from our DG Report include:

• Strong Second Quarter Results - On August 27, 2015, Dollar General Corporation announced its financial results for the second quarter of 2015. The Company reported net sales of $5.09 billion in Q2 2015, up 7.9% as compared to $4.72 billion of revenues reported in the Q2 2014. As per a same day report by Zacks, analyst consensus estimated the Company's revenues of $5.14 billion for the reported quarter. Meanwhile, same-store sales grew 2.8%, with rise in both customer traffic and average transaction value. The Company noted the remainder of the sales increase was attributable to new stores, partially offset by closed stores. Moreover, gross profit in Q2 2015, was $1.59 billion, more than $1.46 billion in previous year quarter. Further, net income of the Company, was recorded at $282.3 million, against $251.3 million in Q2 2014. Compared to the Zacks Consensus EPS estimate of EUR 0.94, Dollar General was able to beat on earnings for the quarter, posting an EPS of $0.95 which reflected an increase of 14.4% YoY.

• Six Months Performance at Glance - For the first half of 2015 the Company reported net sales of $10.0 billion as compared to $9.2 billion in the first six months of 2014, thereby witnessing a 8.3% growth on a y-o-y basis. In addition, gross profit was recorded at $3.1 billion, up by 9.7% YoY. The Company noted that increase in gross profit was primarily attributable to higher initial inventory markups, lower transportation costs and an improved inventory shrink rate. Further, net income for the period came in at $535.6 million, higher than $473.7 billion in the previous year period while Diluted earnings per share of the Company amounted to $1.79, compared to $1.54 in the prior year period.  

• Outlook for 2015 - In 2015, Dollar General expects to increase its total sales around 8% to 9% over the 2014 fiscal year, with same-store sales anticipated to rise approximately 3% to 3.5%. Operating profit for 2015 is expected to grow in range of 7% to 9% YoY. Diluted EPS for the fiscal year is expected to be approximately $3.85 to $3.95. Furthermore, based on sales performance to date and the current operating environment, Dollar General's management expects that the same-store sales likely will be closer to the low-end of the range. Further, capital expenditures are expected to be in the range of $500 million to $550 million in 2015. Dollar General added that it plans to open approximately 730 new stores in 2015, or 6% square footage growth, and relocate or remodel 875 stores. The Company added that as on the earnings release date, the Company is on track with its pipeline development to accelerate new store openings to 7% square footage growth in 2016.

• Management Speak - Commenting on second quarter performance, Todd Vasos, Dollar General's CEO, said, "Dollar General achieved strong financial performance in the second quarter. With new leadership in place for store operations and merchandising, we are well positioned to execute our key initiatives to drive topline growth over time."

To find out how this influences our rating on Dollar General Corporation read the full report in its entirety here: http://www.aciassociation.com/DG.pdf

 --

About ACI Association: 

Active Charter Investors Association ("ACI Association") produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. ACI Association has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

ACI Association has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:  

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on sound investment judgment and publicly available information which is believed to be reliable. The Reviewer and the Sponsor have not performed any independent investigations or forensic audits to validate the information herein. Unless otherwise noted, any content outside of this document has no association with the Author, the Reviewer, or the Sponsor (collectively referred to as the "Production Team") in any way. The Production Team is compensated on a fixed monthly basis and do not hold any positions of interest in any of the securities mentioned herein.  

NO WARRANTY 

ACI Association, the Author, the Reviewer and the Sponsor (collectively referred to as the "Publishers") are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by the Publishers whatsoever for any direct, indirect or consequential loss arising from the use of this document. The Publishers expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, the Publishers do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING 

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither ACI Association nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.aciassociation.com/.

RESTRICTIONS 

ACI Association is not available to residents of Belarus, Cuba, Canada, Iran, North Korea, Sudan, Syria or Somalia.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE www.aciassociation.com