Sales for the quarter ended Jan. 31 increased 6.8% year over year to $4.49 billion, which came up short of analysts' estimate of $4.62 billion, according to Thomson Reuters I/B/E/S. The company cited cold weather, stiff competition and low consumer confidence as the reasons for the performance.
Sales at stores open at least one year rose 1.3%. This is a crucial measure of a retailer's health because it excludes stores that opened or closed in the last year. The company anticipates same-store sales to rise 3% to 4% in the fiscal year 2014. Dollar General also expects earnings per share of $3.45 and $3.55 this fiscal year, which is short of analysts' estimate of $3.69, according to FactSet.
Revenue increased year over year to $322.17 million, or $1.01 per share, from $317.4 million, or 97 cents a share.
TheStreet Ratings team rates DOLLAR GENERAL CORP as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOLLAR GENERAL CORP (DG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."