Dollar General Posts Higher Q2 Profit; Revises Same-Store Sales Target

(RTTNews) - Discount retailer Dollar General Corp.'s (DG) second-quarter net income improved to $251.26 million, or $0.83 per share, from $245.47 million, or $0.75 per share, in the prior-year quarter. Adjusted net income was $251 million, or $0.77 per share, in the 2013 second quarter. On average, 25 analysts polled by Thomson Reuters expected earnings per share of $0.83 for the quarter. Analysts' estimates typically exclude one-time items.

For its fiscal 2014 second quarter, the firm clocked net sales of $4.72 billion, up 7.5 percent, compared with last year's $4.39 billion. Analysts estimated quarterly revenues of $4.77 billion. Same-store sales grew by 2.1 percent, with increases in both customer traffic and average transaction value. The remainder of the sales increase was attributable to new stores, partially offset by sales from closed stores, the company said.

Looking ahead to fiscal 2014, the firm still expects total sales to increase 8.0 to 9.0 percent over the 2013 fiscal year, with same-store sales now anticipated to increase 3.0 to 3.5 percent. Adjusted earnings per sahre for the year are still expected to be nearly $3.45 to $3.55. Analysts project earnings per share of $3.51 for the year.

Guidance for adjusted EPS excludes any expenses which may be incurred or reductions in the assumed share repurchases which may occur in connection with the company's proposal to acquire Family Dollar Stores, Inc.