Summary by Moomoo AI
Dollar General Corporation reported Q3 FY2024 net sales of $10.18 billion, up 5.0% year-over-year, driven by new store openings and a 1.3% increase in same-store sales. The same-store sales growth reflected a 1.1% increase in average transaction amount and a 0.3% rise in customer traffic. However, net income declined 28.9% to $196.5 million, or $0.89 per diluted share.Gross profit margin contracted 18 basis points to 28.8%, primarily due to increased markdowns, higher inventory damages and a greater proportion of sales from the lower-margin consumables category. SG&A expenses increased 111 basis points to 25.7% of sales, impacted by $32.7 million in hurricane-related costs and higher retail labor expenses. Operating profit decreased 25.3% to $323.8 million.The company maintained its store expansion strategy, opening 207 new stores, remodeling 434 stores, and relocating 27 stores during Q3. For fiscal 2024, Dollar General plans approximately 730 new store openings and 1,620 remodels. The company generated operating cash flow of $2.195 billion year-to-date and paid quarterly dividends of $0.59 per share, while maintaining its focus on preserving investment grade credit rating.
