Strong comp, FY EPS guidance reaffirmed
DG reported a strong +3.7% comp, correlating with the strong Q2 performance across most of retail, benefiting from a positive consumer backdrop and favourable weather vs Q1. Gross margins were soft however, missing consensus by 20bps and declining 7bps YoY, with markdowns and transportation costs both headwinds. This was offset by SG&A leverage to result in operating margins in-line with consensus. A lower tax rate drove the $0.01 beat vs AE. FY sales guidance was modestly increased, but margin and EPS guidance was maintained. Encouraging top-line results, but gross margin pressure is a slight concern.Dollar General is a discount retailer. The company's consumables products includes paper and cleaning products, packaged food, perishables, snacks, health and beauty, pet, and tobacco products. The company's seasonal products include decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies. The company's home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed and bath soft goods. The company's apparel includes casual everyday apparel, as well as socks, underwear, disposable diapers, shoes and accessories.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.