Dollar General falls short of first-quarter expectations
The Tennessee-based Dollar General (DG) reported its results for the first quarter, which ended on May 4, before the opening bell today. The company fell short of Wall Street’s sales as well as profit expectations during the quarter.
Total revenue increased 9% YoY (year-over-year) to $6.1 billion, missing Thomson Reuters I/B/E/S Estimates by $80 million. Adjusted earnings per share rose 32% YoY to $1.36, four cents below expectations.
Competitor Dollar Tree (DLTR), which also reported results this morning, missed consensus top- and bottom-line expectations. Its total revenue increased 5% YoY to $5.55 billion, $8 million short of forecasts. Adjusted earnings per share soared 21.4% YoY to $1.19, four cents below projections.
Sales comps also disappoint investors
Dollar General’s same-store sales also failed to please investors. Comps increased 2.1% during the quarter, compared to analysts’ expectation of a 3.24% jump. The company recorded a fall in traffic during the quarter and said that unusually cold and damp weather negatively impacted its comps.
Dollar General reiterated its full-year sales and earnings guidance. It continues to expect a 9% YoY increase in fiscal 2018 total sales, driven by 2% growth in sales comps.
Diluted earnings per share are projected to range between $5.95 and $6.15, based on an effective tax rate range of 22% to 23% for the year. At the mid-point, the guidance reflects an EPS growth of 32% over the last year.
Dollar Tree, on the other hand, lowered its EPS guidance to $4.80–$5.10, compared to the previous range of $5.25–$5.60.