In a May 30th release, Dollar General, Inc. (DG) announced Q1 FY 2024 results for the period ending May 3rd. The Company beat on the top line compared to consensus estimates.
For Q1 Dollar General Inc. posted net income of $363 million on total revenue of $9,914 million with a diluted EPS of $1.65. Comparable values for Q1 FY 2023 ending May 5th were net income of $514 million on revenue of $9,343 million with a diluted EPS $2.34.
Revenue was up 6.1 percent in Q1 2024 compared to Q1 2023. During the most recent quarter, Dollar General attained a gross margin of 30.1 percent (31.6 percent in Q1 2023) and an operating margin of 5.5 percent, down from 7.9 percent in Q1 2023.
For Q4 2023, consolidated comparable store sales, increased by 2.4 percent despite lower average transaction values partly offset by increased traffic.
The classification of revenue by category in Q1 FY 20234 comared to Q1 2023 comprised:-
- Consumables including food, 82.8% up 8.3%
- Seasonal items, 9.7% unchanged
- Home products, 4.8% down 9.9%
- Apparel, 2.7% down 2.0%
In commenting on results, Todd Vasos, the recently re-instated CEO stated “We are pleased with our start to 2024, including top and bottom-line results that exceeded our expectations in the first quarter.” He added, “These results were driven by strong customer traffic growth and market share gains during the quarter, which we believe is a testament to the relevance of our unique combination of value and convenience, as well as to improved execution across our organization.” The Investors call included comments on headwinds including price sensitivity among customers, losses from theft increasing labor and other operating costs and competition.
Guidance for FY 2024 was little changed from Q4 2023 and included net sales growth of 6.0 to 6.8 percent; same-store sales growth of 2.0 to 2.7 percent; and diluted EPS ranging from $6.80 to $7.35.
During Q1 FY 2024 Dollar General opened a net 197 new stores, remodled 463 and relocated 21 units. As of May 3rd the Company operated a total of 20,149 stores representing 152,609 square feet, a 5.5 percent growth over the quarter. Capital expenditure for Q1 FY 2024 attained $342 million including new stores, remodels and upgrades to DCs, transport and technology
Effective May 3rd 2024, Dollar General posted total assets of $31,009 million including $5,539 as goodwill and intangibles. The Company carried long-term debt and lease obligations of $16,209 million. DG had a market capitalization of $28,130 million on May 31st 2024. The share has traded over the past 52 weeks from $101.09 to $173.47 with a 50-day moving average of $145.59. DG closed at $139.28 on May 29th, pre-release, closing at $128.74 on March 30th Dollar General trades with a forward P/E of 17.9. For the trailing 12-months the company posted an operating margin of 6.0 percent and a profit margin of 4.3 percent, returning 5.1 percent on assets and 27.0 percent on equity.