Tue, Jun 3, 11:05 AM (18 days ago)
**Dollar General Corporation (DG) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $10.44 billion, up 5.3% YoY, driven by new stores and 2.4% same-store sales growth. - **Profit Margins:** Gross profit margin increased to 31.0% (up 78 basis points), driven by lower shrink and higher inventory markups. Operating margin was 5.52% of net sales. - **Net Income:** $391.9 million, up 7.9% YoY. Earnings per share (EPS) increased to $1.78, up 7.9% YoY. - **Cash Flow:** Operating cash flow was $847.2 million, up $183.3 million YoY. Capital expenditures were $290.9 million, with full-year projections of $1.3-$1.4 billion. **Key Metrics & Trends:** - **Same-Store Sales:** Up 2.4% YoY, driven by a 2.7% increase in average transaction amount and a 0.3% decrease in customer traffic. - **Inventory Management:** Inventory turnover improved to 4.2 from 3.8 YoY. Inventory levels decreased by 2% YoY. - **Store Growth:** Opened 156 new stores, remodeled 1,250 stores, and closed 168 stores. **Uncertainties & Future Operations:** - **Economic Factors:** Inflation, labor costs, and tariffs pose risks. The company is focused on cost control and strategic initiatives to mitigate these impacts. - **Legal Proceedings:** Ongoing shareholder litigation could have material adverse effects if not successfully defended. - **Capital Allocation:** The company plans to preserve its investment-grade credit rating and maintain financial flexibility, with no share repurchases planned for 2025. **Outlook:** - **Store Growth:** Plans to open approximately 575 new stores, remodel 4,250 stores, and relocate 45 stores in 2025. - **Digital Initiatives:** Continued investment in digital tools and technology to enhance the shopping experience and drive sales. - **Cost Management:** Focus on reducing shrink, damages, and operational costs to enhance profitability.