Retail

Dollar General Results, Buybacks Boosting Shares

200464179-001
Thinkstock
Dollar General Corp. (NYSE: DG) reported fourth-quarter and fiscal 2012 results before markets opened this morning.

The discount retailer reported diluted earnings per share (EPS) of $0.97 on revenues of $4.21 billion for the quarter. In the same period a year ago, Dollar General reported EPS of $0.85 on revenue of $4.19 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.90 and $4.26 billion in revenue.

For the full year, adjusted EPS totaled $2.91 on revenues of $16.02 billion, compared with the consensus estimates for EPS of $2.85 on revenues of $16.07 billion.

The company said that same-store sales rose 3% in the fourth quarter, primarily driven by increased sales of consumables.

The company’s CEO said:

We grew our market share and invested strategically to continue to win with our customers. These results demonstrate the strength of our business strategy, and we believe we are very well-positioned for future growth.

Regarding Dollar General’s outlook, the company said it expects fiscal 2013 sales to rise by 10% to 12%, with same-store sales up 4% to 6%. Operating profit is forecast in a range of $1.78 to $1.845 billion, compared with operating profit of $1.49 billion in 2012.

Yearly gross profit was flat, at 31.7% . Positive factors included higher inventory markups and a lower provision for inventory. Weighing on gross profit were higher markdowns, a smaller impact from price increases and a reduction in shrinkage. Operating profit rose from 10.1% in 2011 to 10.3% in in 2012.

Dollar General repurchased $671 million in its own stock in 2012 and boosted its buyback program by $500 million last week. The company now has $644 million available for share repurchases.

Shares are up about 2.7% in premarket trading this morning at $51.40, in a 52-week range of $39.73 to $56.04. Thomson Reuters had a consensus analyst price target of $53.20 before today’s results were announced.

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.