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Dollar General Corporation (DG): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report
Dollar General posted sturdy third-quarter fiscal 2013 results driven by robust performance in the consumables category. Comparable-store sales also grew in the quarter driven by higher traffic and average transaction count. The company's comps have displayed an upward trajectory for the past 23 years defying unfavorable macroeconomic trends. Further, Dollar General's abundant initiatives as regards to management of expense, inventory, merchandise and operations are likely to push sales north and provide cushion to margins. We believe gross margin are remains are likely to remain under pressure due to an increase in the sales of lower margin carrying consumables items and soft sales of discretionary products. Moreover, six less days between Black Friday and Christmas this holiday season, against last year will also impact sales. Currently, we maintain our Neutral recommendation on the stock.
Founded in 1939 and headquartered in Goodlettsville, Tennessee, Dollar General Corporation is one of the largest discount retailers in the United States. The company trades in low priced merchandise typically $10 or less. As of November 1, 2013, Dollar General had 11,061 stores in 40 states. It offers general merchandise in four categories namely Consumables, Seasonal, Home products and Apparel.
The Consumables Category is the leading category (73.9% of net sales for fiscal 2012) consisting of cleaning products, health & beauty products, snacks, perishables, packaged food and pet supplies and food.
The Seasonal Products Category (13.6% of net sales for fiscal 2012) consists of prepaid phones and accessories, small electronics, batteries, toys, greeting cards, hardware, decorations, automotive gardening supplies, stationery and home office supplies.
The Home products Category (6.6% of net sales for fiscal 2012) includes kitchen supplies, candles small appliances, light bulbs, cookware, frames, craft supplies, bed & bath soft goods and storage containers.
The Apparel Category (5.9% of net sales for fiscal 2012) consists of casual daily wear for infants, children, girls, boys, women and men, along with socks, intimate wear, disposable diapers, accessories and shoes.
Dollar General Corporation (DG): Read the Full Research Report
DOLLAR GENERAL (DG): Free Stock Analysis Report
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