Thu, Aug 29, 11:03 AM (138 days ago)
In its Q2 2024 report, Dollar General Corporation reported a 4.2% increase in net sales to $10.21 billion, driven by new store openings and a 0.5% rise in same-store sales. Gross profit as a percentage of sales declined to 30.0% from 31.1% due to increased markdowns and inventory shrinkage. SG&A expenses rose to 24.6% of sales, reflecting higher labor and occupancy costs. Operating profit fell 20.6% to $550 million, and net income decreased 20.2% to $374.2 million, resulting in diluted earnings per share of $1.70. Cash generated from operations surged 127.4% to $1.653 billion, while total cash dividends paid remained stable at $259.5 million. The company’s inventory turnover was 3.9 times, with inventories decreasing by 11% year-over-year. Dollar General anticipates a more promotional environment in H2 2024 due to economic pressures on its value-conscious customers. The company remains focused on growth, planning to open approximately 730 new stores and remodel 1,620 locations in fiscal 2024. Overall, uncertainties in the economic landscape and rising costs pose challenges for future performance.