Dollar General Q4 Profit Increases; Guides Q1, FY14 - Quick Facts

(RTTNews) - Discount retailer Dollar General Corp. (DG) said that its net income for the 2013 fourth quarter was $322.17 million or $1.01 per share, up from $317.42 million, or $0.97 per share in the fourth quarter of fiscal 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $1.01 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales increased 6.8 percent to $4.49 billion in the 2013 fourth quarter compared to $4.21 billion in the 2012 fourth quarter. Twenty three analysts estimated revenues of $4.62 billion for the quarter.

Same-store sales increased 1.3 percent, resulting from increases in both customer traffic and average transaction amount. Same-store sales increases were driven by sales of tobacco products and perishables.

For the first quarter (13 weeks) ending May 2, 2014, the company expects total sales to increase 7 to 8 percent and sales in same-stores to increase 2 to 3 percent over the 2013 first quarter. First quarter 2014 earnings per share is expected to be approximately $0.72 to $0.74. Analysts expect the company to report earnings of $0.81 per share and revenues of $4.66 billion for the first-quarter.

For the 2014 fiscal year, the company expects total sales to increase 8 to 9 percent over the 2013 fiscal year. Same-store sales are expected to increase 3 to 4 percent. Adjusted operating profit for 2014 is expected to increase 2 to 5 percent.

Earnings per share for the fiscal year is expected to be approximately $3.45 to $3.55, based on approximately 306 million to 307 million weighted average diluted shares, assuming share repurchases of approximately $1.1 billion.

Street currently is looking for fiscal year 2014 earnings of $3.69 per share on annual revenues of $19.29 billion.

Capital expenditures are expected to be in the range of $450 million to $500 million in 2014. The company plans to open approximately 700 new stores in 2014.