Stock News Recap: Dollar General Corporation (NYSE: DG)

On 14 May 2020, Dollar General Corporation stock identified change of 56.26% away from 52-week low price and recently located move of -1.87% off 52-week high price. DG stock has been recorded 10.62% away from 50 day moving average and 15.53% away from 200 day moving average. Moving closer, we can see that shares have been trading 2.16% off 20-day moving average.

Dollar General Corporation (DG) recently stated financial results for its fiscal year 2019 fourth quarter (13 weeks) and fiscal year (52 weeks) ended January 31, 2020.

  • Fourth Quarter Net Sales Increased 7.6%; Fiscal Year Net Sales Increased 8.3%
  • Fourth Quarter Same-Store Sales Increased 3.2%; Fiscal Year Same-Store Sales Increased 3.9%
  • Fourth Quarter Operating Profit Increased 12.9% to $720.9M
  • Fiscal Year Operating Profit Increased 8.8% to $2.3B; Fiscal Year Adjusted Operating Profit Increased 10.3% to $2.3B1
  • Fourth Quarter Diluted Earnings Per Share (“EPS”) Increased 14.1% to $2.10
  • Fiscal Year Diluted EPS Increased 11.2% to $6.64; Fiscal Year Adjusted Diluted EPS Increased 12.7% to $6.731
  • Yearly Cash Flows from Operations Increased 4.4% to $2.2B
  • $1.5B Returned to Shareholders in the Fiscal Year through Share Repurchases and Cash Dividends
  • Board of Directors Declares Increased Quarterly Cash Dividend of $0.36 per share

Fourth Quarter 2019 Highlights

Net sales increased 7.6% to $7.2B in the fourth quarter of 2019 contrast to $6.6B in the fourth quarter of 2018. This net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures. Same-store sales increased 3.2% contrast to the fourth quarter of 2018, driven by increases in both consumer traffic and average transaction amount. Same-store sales in the fourth quarter of 2019 included growth in each of the Company’s four product categories – consumables, apparel, home, and seasonal.

Gross profit as a percentage of net sales was 31.8% in the fourth quarter of 2019 contrast to 31.2% in the fourth quarter of 2018, a raise of 60 basis points. This gross profit rate increase was primarily attributable to higher initial markups on inventory purchases and a lower LIFO provision. These factors were partially offset by a raise in markdowns as a percentage of sales, a greater proportion of sales coming from the consumables category, which generally has a lower gross profit rate than other product categories, and sales of lower margin products comprising a higher proportion of sales within the consumables category, as well as increased distribution costs.

Selling, general and administrative expenses (“SG&A”) as a percentage of net sales were 21.7% in the fourth quarter of 2019 contrast to 21.6% in the fourth quarter of 2018, a raise of 13 basis points, primarily Because of increases in store occupancy costs, repairs and maintenance expenses, and advertising costs. The 2019 fourth quarter reflects a decrease of about $11.6M in hurricane and other disaster-related expenses contrast to the 2018 fourth quarter.

Operating profit for the fourth quarter of 2019 increased 12.9% to $720.9M contrast to $638.5M in the fourth quarter of 2018.

The effective income tax rate in the fourth quarter of 2019 was 23.0% contrast to 21.2% in the fourth quarter of 2018. This higher effective income tax rate was primarilyBecause of a raise in income taxes resulting from changes in state income tax laws and a federal income tax benefit arising from the Tax Cuts and Jobs Act in 2018 that did not reoccur in 2019.

The Company stated net income of $535.4M for the fourth quarter of 2019 contrast to $483.2M in the fourth quarter of 2018. Diluted EPS increased 14.1% to $2.10 for the fourth quarter of 2019 contrast to diluted EPS of $1.84 in the fourth quarter of 2018. Diluted EPS for the fourth quarter of 2018 included an approximate $0.04 net negative impact from Q4 Disaster-Related Expenses2.

In the Company’s 2018 fourth quarter earnings release dated March 14, 2019, “Q4 Disaster-Related Expenses” were defined as an estimated $11.7M of hurricane-related expenses as well as an estimated $2.2M year-over-year increase in other disaster-related expenses, both of which were greater than anticipated.

The Consumer Defensive sector company, Dollar General Corporation noticed change of -0.04% to $181.5 along volume of 1497612 shares in recent session compared to an average volume of 2784.54K. DG’s shares are at 13.54% for the quarter and driving a 53.76% return over the course of the past year and is now at 16.36% since this point in 2018. The average volatility for the week at 2.57% and for month was at 2.46%. There are 253.36M shares outstanding and 251.13M shares are floated in market.

 

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