Dollar General Corporation (DG) has reported a 5.30 percent fall in profit for the quarter ended May 05, 2017. The company has earned $279.49 million, or $1.02 a share in the quarter, compared with $295.12 million, or $1.03 a share for the same period last year.
Revenue during the quarter grew 6.54 percent to $5,609.62 million from $5,265.43 million in the previous year period. Gross margin for the quarter contracted 34 basis points over the previous year period to 30.29 percent. Total expenses were 91.55 percent of quarterly revenues, up from 90.87 percent for the same period last year. That has resulted in a contraction of 68 basis points in operating margin to 8.45 percent.
Operating income for the quarter was $473.80 million, compared with $480.74 million in the previous year period.
"For the first quarter of 2017, I am pleased with our earnings results which reflect solid management of the business in a difficult retail environment as we overcame our most challenging comparisons from the prior year. Our same-store sales improved as we moved past the delay in income tax refunds and the timing shift of the later Easter holiday. We continue to execute on our focused strategy and implement our operating initiatives which we believe will improve customer traffic and transactions," said Todd Vasos, Dollar General's chief executive officer.
For the fiscal year 2017, Dollar General Corporation forecasts revenue to grow in the range of 5 percent to 7 percent. GAAP diluted EPS is forecasted to remain consistent with the prior guidance range of $4.25 to $4.50.
Operating cash flow improves significantly
Dollar General Corporation has generated cash of $510.46 million from operating activities during the quarter, up 26.37 percent or $106.51 million, when compared with the last year period.
The company has spent $143.39 million cash to meet investing activities during the quarter as against cash outgo of $98.64 million in the last year period. It has incurred capital expenditure of $143.39 million on net basis during the quarter, up 45.36 percent or $44.74 million from year ago period.
The company has spent $349.01 million cash to carry out financing activities during the quarter as against cash outgo of $275.57 million in the last year period.
Cash and cash equivalents stood at $205.98 million as on May 05, 2017, up 9.74 percent or $18.29 million from $187.69 million on Apr. 29, 2016.
Debt moves up marginally
Dollar General Corporation has witnessed an increase in total debt over the last one year. It stood at $3,033.28 million as on May 05, 2017, up 1.41 percent or $42.09 million from $2,991.19 million on Apr. 29, 2016. Interest coverage ratio deteriorated to 18.95 for the quarter from 19.96 for the same period last year.
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