Stock in Concentration: Dollar General Corporation (NYSE: DG)

Shares of Dollar General Corporation (DG) closed the trading at a price of $106.38 with the positive change of +1.43%. In the past session approximately 1,566,339 shares were exchanged against the average daily trading volume of 2,285,548 shares. The stock touched to the maximum level of $106.61, and it reached the lower level of $104.89 in past session. The stock’s market capitalization has now valued at $28.463B . The stock’s low price in its 52 week is $70.30 per share while $106.61 as the 52 week high price. The last bid price was called at $0.00 x 1300 and the ask price was stated at $0.00 x 900.

Dollar General Corporation (NYSE: DG) stated financial results for its fiscal year 2018 first quarter (13 weeks) ended May 4, 2018.

Net sales increased 9.0% to $6.1B in the first quarter of 2018 contrast to $5.6B in the first quarter of 2017. The net sales increase in the first quarter of 2018 was positively affected by the sales contribution from new stores, modestly offset by the impact of store closures. Same-store sales increased 2.1% from the first quarter of 2017Because of a raise in average transaction amount, partially offset by a decline in consumer traffic. Growth in same-store sales was driven by robust sales of consumables, partially offset by sales declines in the apparel, seasonal and home categories. The Company believes that the effect of unseasonably cold and damp weather on certain product categories negatively influenced same-store sales in the quarter.

Gross profit as a percentage of net sales was 30.5% in the first quarter of 2018 contrast to 30.3% in the first quarter of 2017, a raise of 17 basis points. The first quarter of 2018 gross profit rate increase was primarily attributable to higher initial markups on inventory purchases and an improved rate of inventory shrink. These factors were partially offset by a greater proportion of sales coming from consumables that generally have a lower gross profit rate than other product categories, sales of lower margin products comprising a higher proportion of consumables sales, and increased transportation costs.

Merchandise Inventories

As of May 4, 2018, total merchandise inventories, at cost, were $3.59B contrast to $3.30B as of May 5, 2017, a raise of about 0.4% on a per store basis.

Dollar General Corporation’s (DG) EPS growth ratio for the past five years was 9.50% while Sales growth for the past five years was 7.90%. Return on equity (ROE) was noted as 27.30% while return on investment (ROI) was 14.60%

Capital Expenditures

Total additions to property and equipment in the first quarter of 2018 were $165M, including about: $70M for improvements, upgrades, remodels and relocations of existing stores; $41M for new leased stores, primarily for leasehold improvements, fixtures and equipment; $39M for distribution and transportation related projects; and $12M for information systems upgrades and technology-related projects. During the first quarter of 2018, the Company opened 241 new stores, remodeled 322 stores and relocated 31 stores.

Dollar General Corporation’s (DG) price volatility for a month noted as 1.51% however its price volatility for a week documented as 1.70%. The corporation holds 266.12 million outstanding shares and its 266.09 million shares were floated in the market. The stock established a positive trend of 3.96% in last week and indicated rise of 7.24% in previous month.

Share Repurchases

 

The Company repurchased $150M of its ordinary stock, or 1.6M shares, under its share repurchase program in the first quarter of 2018, at an average price of $94.41 per share. From the inception of the share repurchase program in December 2011 through the end of the first quarter of 2018, the Company has repurchased 83.0M shares of its ordinary stock at an average price of $63.80 per share, for a total cost of $5.3B. The total remaining authorization for future repurchases was about $1.2B at the end of the first quarter of 2018. Under the authorization, purchases may be made in the open market or in privately negotiated transactions from time to time subject to market and other conditions. The authorization has no expiration date.

Dividend

On May 29, 2018, the Company’s Board of Directors reported a quarterly cash dividend of $0.29 per share on the Company’s ordinary stock, payable on or before July 24, 2018 to shareholders of record on July 10, 2018. While the Board of Directors intends to continue regular cash dividends, the declaration and amount of future dividends are subject to the sole discretion of the Board and will depend upon, among other things, the Company’s results of operations, cash requirements, financial condition, contractual restrictions, and other factors the Board may deem relevant in its sole discretion.

Andrew Carr

Andrew Carr covers the Business news across the all us market sectors for Streetobserver.com. He has over 5 years experience writing financial and business news. He is a graduate of the University of Florida graduating with an MBA. He focuses on adding value to investors' portfolios via thoroughly checked proprietary information and data sources. He has a very strong interest in stock trading, and other various investments. He currently lives in Fort Myers, FL with his wife Heidi.

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