LONDON, UK / ACCESSWIRE / June 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Dollar General Corp. (NYSE: DG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DG, following the Company's reporting of its first quarter fiscal 2017 financial results on June 01, 2017. The discount retailer beat top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For its 13 weeks ended May 05, 2017, Dollar General reported that net sales increased 6.5% to $5.61 billion compared to $5.27 billion in Q1 2016. Dollar General's same-store sales in Q1 2017 increased 0.7% primarily due to an increase in average transaction amount, and partially offset by a decline in traffic. The Company's same-store sales were driven by positive results in the consumables and apparel categories, and partially offset by negative results in the home and seasonal categories.

During Q1 2017, Dollar General's gross profit, as a percentage of net sales, was 30.3%, reflecting a drop of 34 basis points compared to 30.6% in Q1 2016, attributed to higher markdowns primarily for inventory clearance and promotional activities, and partially offset by higher initial inventory markups.

Dollar General's selling, general, and administrative expense ("SG&A"), as a percentage of net sales, was 21.8% in Q1 2017, adding 34 basis points compared to 21.5% in Q1 2016. The SG&A increase was primarily attributable to increased labor costs, primarily as a result of the Company's investment in store manager compensation and occupancy costs.

Dollar General's net income and diluted earnings per share (EPS) for Q1 2017 was $279 million and $1.02, respectively, compared to net income and diluted EPS of $295 million and $1.03, respectively, in Q1 2016. The Company's earnings, adjusted for non-recurring costs totaled $1.03 per share, topped Wall Street's expectations of $0.99 per share.

Merchandise Inventories

As of May 05, 2017, Dollar General's total merchandise inventories, at cost, were $3.30 billion compared to $3.07 billion as of April 29, 2016, representing an increase of 0.5% on a per-store basis.

Capital Expenditures

During Q1 2017, Dollar General's total additions to property and equipment were $144 million: comprising of $54 million for distribution and transportation-related capital expenditures; $50 million for improvements, upgrades, remodels and relocations of its existing stores; and $35 million related to new leased stores, primarily for leasehold improvements, fixtures and equipment.

During Q1 2017, Dollar General opened 293 new stores and remodeled or relocated 301 stores.

Share Repurchases & Dividend

In Q1 2017, Dollar General repurchased $89 million, or 1.3 million shares, under its share repurchase program, at an average price of $70.86 per share. Since December 2011, the Company has repurchased 75.6 million shares of its common stock at a total cost of $4.7 billion, at an average price of $61.57 per share. Dollar General's total remaining authorization for future repurchases was approximately $845 million at the end of the reported quarter with the authorization having no expiration date.

On May 31, 2017, Dollar General's Board of Directors declared a regular quarterly cash dividend of $0.26 per share on the Company's common stock. The dividend will be payable on July 25, 2017, to shareholders of record at the close of business on July 11, 2017.

Financial Outlook

For the 52-week fiscal year ending February 2, 2018, Dollar General reaffirmed its GAAP diluted EPS guidance range of $4.25 to $4.50. The Company's net sales are expected to increase by approximately 5% to 7% compared with the prior guidance range of 4% to 6%. Dollar General is anticipating capital expenditures to be in the range of $715 million to $765 million compared with the prior guidance range of $650 million to $700 million. The Company's same-store sales growth remained unchanged from the prior guidance range of slightly positive to an increase of 2%.

For FY17, Dollar General plans to open approximately 1,290 new stores in addition to remodeling or relocating 760 stores and to reduce the Company's total projects for remodels and relocations by 140.

Stock Performance

On Wednesday, June 21, 2017, the stock closed the trading session at $71.73, marginally up 0.46% from its previous closing price of $71.40. A total volume of 3.03 million shares have exchanged hands, which was higher than the 3-month average volume of 2.98 million shares. Dollar General's stock price advanced 1.49% in the last three months. The stock is trading at a PE ratio of 16.20 and has a dividend yield of 1.45%. The stock currently has a market cap of $20.29 billion.

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SOURCE: Pro-Trader Daily