Dollar General Q1 Profit Rises; Backs FY14 Targets - Quick Facts

(RTTNews) - Discount retailer Dollar General Corp. (DG) posted higher net income of $222.4 million, or $0.72 per share in the first quarter, compared with the year-ago period's $220.08 million, or $0.67 per share. On an adjusted basis, net income amounted to $232 million, or $0.71 per share, in the 2013 first quarter. On average, 25 analysts polled by Thomson Reuters expected earnings per share of $0.73 for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly net sales went up by 6.8 percent to $4.52 billion, from $4.23 billion in the 2013 first quarter, whereas 23 analysts estimated revenues of $4.56 billion. Same-store sales rose 1.5 percent resulting from increases in both customer traffic and average transaction amount. Sales increases in consumables significantly outpaced the firm's non-consumable categories, led by increased sales of tobacco products, perishables and candy and snacks. Sales were impacted by unfavorable weather conditions during much of the quarter, a competitive retail environment and continued financial pressures on the company's core customers.

For fiscal 2014, Dollar General confirmed its outlook, by still projecting total sales to increase 8 to 9 percent over the 2013 fiscal year, with same-store sales likely to increase 3 to 4 percent. Annual earnings per share are still expected to be around $3.45 - $3.55. Analysts estimate earnings per share of $3.51 for the year.

In 2014, capital expenditures are expected to range between $450 million and $500 million, and the firm plans to open nearly 700 new stores in the same year and to relocate or remodel, using the company's traditional remodel criteria, around 500 stores.