Dollar General (DG) Q3 2024 Earnings Breakdown

Key Highlights:

• Net Sales Growth: Driven by new store openings and a 1.3% increase in same-store sales, resulting in total net sales of $10.18 billion for Q3 2024.
• Gross Profit Margin Pressure: Declined by 18 basis points to 28.8% compared to Q3 2023, primarily due to increased markdowns and damages, and a larger proportion of sales from lower-margin consumables.
• Inventory Shrink Concerns: Shrink continues to be a significant challenge impacting profitability, though initiatives like refined self-checkout are starting to show positive results.
• Strategic Initiatives: Continued investment in DG Fresh, digital tools, and DG Media Network to drive sales growth and capture new opportunities.
• Store Expansion and Remodels: Opened 207 new stores, remodeled 434, and relocated 27 in Q3 2024. Plans for significant expansion and remodels continue into fiscal 2025.
• pOpshelf Uncertainties: Softer discretionary sales environment has led to the conversion of some pOpshelf stores to Dollar General. New store openings under this banner are paused.
• Strong Liquidity: The company boasts a strong cash position and access to credit, ensuring sufficient liquidity for operations, investments, and dividends.
• Share Repurchases Paused: No share repurchases were made in Q3 2024 and are not planned for the remainder of the fiscal year, prioritizing investment-grade credit rating and financial flexibility.