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Strong revenue growth in the midst of challenges

    • Netto turnover: Reden by 5.3% to $ 10.4 billion in Q1.

    • New store openings: 156 new stores opened during the quarter.

    • The sale of the same store: Rose 2.4% during the quarter.

    • Gross profit margin: 31%, an increase of 78 basic points.

    • Operational profit: Reden by 5.5% to $ 576 million.

    • EPS: Increased 7.9% to $ 1.78.

    • Cash flow of operations: $ 847 million, an increase of 27.6%.

    • Merchandise Inventories: $ 6.6 billion, a 5% decrease compared to last year.

    • Dividend payment: $ 0.59 per ordinary share, a total of $ 130 million.

    • 2025 Financial guidelines: The net revenue growth from 3.7% to 4.7%, the revenue growth of the same stores of 1.5% to 2.5%, an EPS range of $ 5.20 to $ 5.80.

    Release date: 3 June 2025

    For the entire transcript of the profit, consult the full transcript of the profit call.

    • Dollar General Corp (NYSE: DG) reported an increase of 5.3% in the net turnover to $ 10.4 billion in Q1 2025, powered by the opening of 156 new stores.

    • The turnover of the same store increased by 2.4%, with growth in both usable and non-desirable product categories.

    • The company achieved a gross profit margin with 78 basic points, attributed to lower shrinking and higher stock markings.

    • Dollar General Corp (NYSE: DG) saw an increase of 7.9% in EPS to $ 1.78, which exceeds internal expectations.

    • The company reported a strong cash flow of activities, with 27.6% to $ 847 million and reduced merchandise stocks by 5%.

    • Customer traffic fell somewhat by 0.3%in the quarter, despite strong sales growth.

    • SG&A issues rose with 77 basic points as a percentage of sales, powered by higher retail work and incentive compensation costs.

    • The company is confronted with uncertainty because of the developing rate environment, which can influence consumer expenditure and costs of goods.

    • Dollar General Corp (NYSE: DG) anticipates a significant headwind of the costs of stimulation compensation, in particular influence on the Q2.

    • The costs for building new stores have increased by more than 40% since 2019, which influences the return on investments of the company for new store openings.

    Q: Can you discuss your trust in retaining Top-Line Momentum and any surprises during the quarter? Also, how does the guidelines reflect your expectations for the entire year? A: Todd Vasos, CEO, emphasized trust in maintaining top-line momentum due to improvements in shopping standards, customer service and reduced sales. He noted that the shrink termment and improvements for Supply Chain contributed positively. Kelly Dilts, CFO, added that the guidelines regards the quality of the Q1, but also takes into account uncertainty, making potential pressure from consumer expenditure possible.