Operating profit rose 4.5% to $512.2 million
The company opened 240 new stores in the quarter and updated 330 stores. Dollar General ended its fiscal first quarter with 15,597 stores in 44 states.
“Our team continued to make great progress on our strategic initiatives this quarter, while remaining focused on our four operating priorities,” said chief executive officer Todd Vasos. The company has identified its operating priorities as driving profitable same-store sales growth, healthy new store returns, strong free cash flow and long-term shareholder value.
The company reiterated its full-year forecast, which anticipates an impact from higher tariff rates on certain products imported from China that went into effect May 10, 2019. The guidance assumes the company can successfully mitigate, absorb or otherwise offset the impact of the increased tariff rates. Dollar General said its fiscal 2019 forecast does not anticipate additional increases in tariff rates or any expansion of additional products subject to tariffs.
In the 52-week fiscal year ending January 31, Dollar General expects to open 975 stores and remodel 1,000 outlets with upgrades that include self-checkout lanes for shoppers who can just scan products and pay through the store app on their phones. The company expects to add fruits and vegetables to 200 stores. The company said it would continue adding coolers to its stores as it diversifies its fresh, frozen and better-for-you food offerings.
“Looking forward, we have a wide variety of initiatives and projects that we believe can help extend our growth trajectory over both the near and longer term,” Vasos said. “During 2019, we will enter our 80th year of serving others, and we remain dedicated to bringing innovation to our retail channel and delivering on our commitment of value and convenience to our customers. We are excited about our future and believe we are creating long-term value for our shareholders.”