Source: Thinkstock
The discount retailer reported diluted earnings per share (EPS) of $0.97 on revenues of $4.21 billion for the quarter. In the same period a year ago, Dollar General reported EPS of $0.85 on revenue of $4.19 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.90 and $4.26 billion in revenue.
For the full year, adjusted EPS totaled $2.91 on revenues of $16.02 billion, compared with the consensus estimates for EPS of $2.85 on revenues of $16.07 billion.
The company said that same-store sales rose 3% in the fourth quarter, primarily driven by increased sales of consumables.
The company’s CEO said:
We grew our market share and invested strategically to continue to win with our customers. These results demonstrate the strength of our business strategy, and we believe we are very well-positioned for future growth.
Regarding Dollar General’s outlook, the company said it expects fiscal 2013 sales to rise by 10% to 12%, with same-store sales up 4% to 6%. Operating profit is forecast in a range of $1.78 to $1.845 billion, compared with operating profit of $1.49 billion in 2012.
Yearly gross profit was flat, at 31.7% . Positive factors included higher inventory markups and a lower provision for inventory. Weighing on gross profit were higher markdowns, a smaller impact from price increases and a reduction in shrinkage. Operating profit rose from 10.1% in 2011 to 10.3% in in 2012.
Dollar General repurchased $671 million in its own stock in 2012 and boosted its buyback program by $500 million last week. The company now has $644 million available for share repurchases.
Shares are up about 2.7% in premarket trading this morning at $51.40, in a 52-week range of $39.73 to $56.04. Thomson Reuters had a consensus analyst price target of $53.20 before today’s results were announced.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
