Table of Contents
GOODLETTSVILLE, Tenn. — Dollar General Corp. has lowered the high end of its projection for sales and profits for fiscal 2013, citing reduced gross margin and moderating sales growth.
Dollar General Corp. has lowered the high end of its projection for sales and profits for fiscal 2013, citing reduced gross margin and moderating sales growth.
Total sales are now expected to increase between 10% and 11%, down from a March projection of 10% to 12%. Similarly, comparable-store sales growth has been tightened to a 4%-to-5% range from a prior high end of 6%.
Full-year earnings are now expected to total between $3.15 per share and $3.22 per share, down from $3.30 on the high end.
Analysts surveyed by Thomson Reuters were expecting earnings of $3.28 per share on average.
"We are forecasting gross margin contraction for the full year to be in line with the first quarter due to the continued mix shift within consumables to lower-margin items, higher inventory shrink and softer sales in non-consumables," said chief financial officer David Tehle during the company’s first quarter conference call with analysts.
