Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Dollar General Corporation    DG

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Dollar General : Extends Streak of Rising Sales, Plans 900 More Stores

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/07/2017 | 08:46pm CET
By Sarah Nassauer 

Dollar General Corp. said quarterly sales rose at the fastest pace in nearly three years, a sign that the discount chain continues to find pockets of cash-strapped consumers by opening hundreds of new stores, many in rural areas.

Sales in existing stores rose 4.3% in the quarter ended Nov. 3, as more customers visited its small, convenient stores where they spend on average $12 per trip.

The Goodlettsville, Tenn.-based retailer confirmed it plans to open 1,285 stores in fiscal 2017, and 900 stores next year. Dollar General will also remodel 1,000 older stores, modernizing and adding refrigerated coolers to sell more fresh food and more space for health and beauty products.

Stores with more cooler space receive one additional trip per shopper on average, said Chief Executive Todd Vasos on a call with investors. "All ships in the harbor, if you will, rise within those remodels," said Mr. Vasos.

The retailer's stock rose 2% to $92.71 in mid-day trading. The shares have gained 25% so far this year.

Dollar General's rosy earnings report was similar to that of competitor Dollar Tree Inc. two weeks ago, as the small format chains, often located closer to shoppers than big-box competitors or traditional grocery stores, continue to appeal to budget-minded customers. Dollar Tree's sales in existing stores rose 3.3% in the most recent quarter.

Dollar General has grown rapidly in recent years, in part by opening thousands of stores in mostly rural areas to access more of its core shoppers: households that earn $40,000 a year or less.

With around 14,000 stores in the U.S., that strategy has proved fruitful, even as the economy grows, because rural communities have recovered more slowly than metropolitan areas.

On Thursday, Mr. Vasos said Dollar General will work to reach more urban customers as well.

"We are seeing that our brand is resonating in geographic areas that are new to us, as some of our highest sales performance is coming from areas where we historically have not had a presence," he said. "We anticipate that 75% of the U.S. population will be within five miles of a Dollar General by the end of fiscal 2017."

Net sales increased 11% to $5.9 billion during its third quarter. Profit rose 4.3% to $252.5 million. The company now predicts net sales will grow 7% this fiscal year, up from a previous forecast of 5% to 7%.

--Imani Moise contributed to this article.

Write to Sarah Nassauer at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DOLLAR GENERAL CORPORATION
01/20 DOLLAR GENERAL : Small-town budgets hurting from loss of mini Walmarts
01/20 DOLLAR GENERAL : Photos released of armed robber at Dollar General
01/20 DOLLAR GENERAL : After setback, proposed Dollar General on Fosterburg Road gets ..
01/20 DOLLAR GENERAL : 2 armed men robbed Family Dollar in Ocala
01/19 DOLLAR GENERAL : Open for business
01/18 DOLLAR GENERAL : Sign variance talk turns into debate about Dollar General and z..
01/17 DOLLAR GENERAL : moves ahead in Gearhart
01/17 DOLLAR GENERAL : One dead, two wounded in road rage shooting
01/17 DOLLAR GENERAL : Westside Dollar General to offer beer, wine
01/17 DOLLAR GENERAL : Armed robber leaves Dollar General empty-handed
More news
News from SeekingAlpha
01/21 An 'All-Weather' Income Portfolio For Financial Independence
01/17 Oppenheimer sees upside for dollar stores
01/10 Follow Dollar General Into Battle
01/10 Dollar General's Unique Position
01/08 We Are In The Retail 3.0 Era
Financials ($)
Sales 2018 23 533 M
EBIT 2018 2 046 M
Net income 2018 1 221 M
Debt 2018 2 802 M
Yield 2018 1,02%
P/E ratio 2018 22,78
P/E ratio 2019 19,38
EV / Sales 2018 1,30x
EV / Sales 2019 1,18x
Capitalization 27 694 M
Chart DOLLAR GENERAL CORPORATION
Duration : Period :
Dollar General Corporation Technical Analysis Chart | DG | US2566771059 | 4-Traders
Technical analysis trends DOLLAR GENERAL CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 32
Average target price 100 $
Spread / Average Target -1,7%
EPS Revisions
Managers
NameTitle
Todd J. Vasos Chief Executive Officer & Director
Mike M. Calbert Chairman
John W. Garratt Chief Financial Officer & Executive Vice President
Warren F. Bryant Independent Director
William C. Rhodes Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
DOLLAR GENERAL CORPORATION9.64%27 694
COSTCO WHOLESALE CORPORATION3.32%84 451
WAL-MART DE MEXICO S A B DE C V-1.87%44 383
TARGET CORPORATION19.69%42 453
DOLLARAMA INC2.20%14 306
VIPSHOP HOLDINGS LTD - ADR35.92%9 452