Company raises its outlook for the full fiscal year

GOODLETTSVILLE, Tenn. — Dollar General reported net income of $677.7 million for the first quarter of 2021, an increase of 4.2% compared to $650.4 million in the first quarter of 2020. Diluted earnings per share increased 10.2% to $2.82 for the first quarter of 2021 compared to diluted EPS of $2.56 in the first quarter of 2020.

“We are pleased with our strong start to fiscal 2021, and I want to thank our associates for their unwavering commitment to supporting our customers, communities, and each other,” said Todd Vasos, Dollar General’s chief executive officer. “As a testament to their efforts, our first-quarter results exceeded our expectations, reflecting strong underlying performance across the business, which we believe was enhanced by the most recent round of government stimulus payment. Given our first-quarter outperformance, we are raising our financial outlook for fiscal 2021.”

“During the first quarter, we executed more than 800 real estate projects, including new store openings in our pOpshelf and larger footprint Dollar General formats. In addition, we remained focused on serving our customers, while further advancing our key strategic initiatives. Looking ahead, we are excited about our plans and believe we are well-positioned to continue delivering long-term sustainable growth and value for our shareholders.”

Dollar General reported that net sales decreased 0.6% to $8.4 billion for the 13-week first quarter ended April 30. Same-store sales decreased 4.6%, but increased 17.1% on a two-year stack basis. Operating profit increased 4.9% to $908.9 million.

Dollar General raised its outlook for the full fiscal year. It now expects a same-store sales decline of 5% to 3% (revised from its previous expectation of a 6% to 4% decline). The new projection reflects growth of approximately 11% to 13% on a two-year stack basis.

The company is also expecting:

• Net sales in the range of a 1% decline to an increase of 1%; compared to its previous expectation in the range of a 2% decline to flat.
• Diluted EPS in the range of $9.50 to $10.20, which reflects a compound annual growth rate in the range of approximately 20% to 24% (or in the range of approximately 19% to 23% compared to 2019 Adjusted diluted EPS) over a two-year period³; compared to its previous expectation in the range of $8.80 to $9.50 (This diluted EPS guidance assumes an effective tax rate in the range of 22% to 23%).
• Share repurchases of approximately $2.2 billion; compared to its previous expectation of approximately $1.8 billion.

Dollar General is also projecting that capital expenditures, including those related to the company’s strategic initiatives, in the range of $1.05 billion to $1.15 billion. Dollar General plans to execute 2,900 real estate projects in the current fiscal year, including 1,050 new store openings, 1,750 store remodels, and 100 store relocations.