$DG (+0%) | Dollar General Q2 Earnings Highlights:

🔹 EPS: $1.70 (Est. $1.80) 🔴

🔹 Revenue: $10.21B (Est. $10.38B) 🔴

🔸 No Share Repurchases Planned for FY'24

CUTS FY'25 Guidance: 

🔹 EPS: $5.50-$6.20 (Prev: $6.80-$7.55; Est. $7.12) 🔴

🔹 Net Sales Growth: 4.7%-5.3% (Prev: 6.0%-6.7%) 🔴

🔹 Same-Store Sales Growth: 1.0%-1.6% (Prev: 2.0%-2.7%) 🔴

Key Metrics and Performance: 

🔹 Net Sales Increase: 4.2% YoY to $10.2B

🔹 Same-Store Sales Increase: 0.5% YoY

🔹 Operating Profit: $550M (DOWN 20.6% YoY)

🔹 Net Profit: $374.2M (DOWN 20.2% YoY)

🔹 Gross Profit Margin: 30.0% (DOWN 112 basis points YoY)

🔹 SG&A Expenses: 24.6% of net sales (UP 57 basis points YoY)

🔹 Cash Flows from Operations: $1.7B year-to-date

Operational Highlights: 

🔹 Merchandise Inventories: $7.0B (DOWN 11.0% on a per-store basis YoY)

🔹 Capital Expenditures: $696M year-to-date

🔹 Store Openings: 213 new stores; 478 remodels; 25 relocations

🔹 Dividend: $0.59 per share, payable October 22, 2024

CEO Todd Vasos' Commentary: 

🔸 "Despite advancing several of our operational goals and driving positive traffic growth, we are not satisfied with our financial results, including top-line results below our expectations for the quarter. We are taking decisive action to enhance our value and convenience offering and improve the in-store experience."

Strategic Actions and Outlook: 

🔸 Focus on Back to Basics Plan: Enhancing operational efficiency and customer experience

🔸 Adapting to Softer Sales Trends: Responding to core customers' financial constraints

🔸 No Share Repurchases Planned for FY 2024: Continuing to prioritize financial flexibility

🔸 Store Growth Outlook: 730 new store openings, 1,620 remodels, and 85 relocations for FY 2024