Dollar General Finishes Year Ahead Of Expectations

For the fiscal fourth quarter ended January 29, Dollar General posted net income of $376.2 million, or $1.30 per diluted share, versus $355.4 million, or $1.17 per diluted share, in the year-prior period. Comparable store sales gained 2.2%, according to the company.

Earnings per diluted share beat a Thomson Reuters analyst average estimate of $1.26 per share.

Net sales were $5.29 billion, Dollar General reported, compared to $4.94 billion in the year-earlier fourth quarter. Operating profit was $612.4 million versus $566.7 million in the 2014 quarter.

On a product category basis, candy and snacks, tobacco, perishables, seasonal, and home drove comp sales partially offset by a modest decline in apparel, Dollar General asserted. The most significant advances in net sales occurred in candy and snacks, perishables, tobacco, and food, the company maintained.

For the full fiscal year, Dollar General posted net income of $1.17 billion, or $3.95 per diluted share, versus $1.07 billion, or $3.49 per diluted share, in the year prior. Comps gained 2.8%. Adjusted diluted earnings per share were $3.96 in fiscal 2015 versus $3.50 in fiscal 2014.

Net sales were $20.37 billion, Dollar General stated, compared to $18.91 billion in the year earlier. Operating profit was $1.94 billion versus $1.77 billion in fiscal 2014.

"In the fourth quarter, we effectively balanced sales and operating profit through our toughest quarterly comparison of the year to deliver record results leading to full year diluted EPS growth of 13%,’’ said Todd Vasos, Dollar General’s CEO. “Looking ahead, Dollar General continues to have significant opportunities for growth. The goal of our long-term growth model that we announced today is to drive 11% to 17% total annual shareholder return per year through EPS growth and dividend yield. Considering the financial results we have delivered over the last three years and consistent with how we are managing the business, our growth model is focused on increasing long-term shareholder value by driving profitable sales growth, capturing growth opportunities, enhancing our position as a low-cost operator and investing in our people."

The company plans to open approximately 900 new stores and relocate or remodel 875 stores in fiscal 2016. Dollar General currently operates 12,483 stores in 43 states.