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DG · DOLLAR GENERAL CORP

35 filings

10-K

DG 10-K Annual Reports

DOLLAR GENERAL CORP - 35 annual reports

Filing record · 2016–202610-K1110-Q328-K90

2026
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 30, 2026
Dollar General Corporation (DG) reported its fiscal year results ending January 30, 2026. The company demonstrated solid revenue growth, driven by both increased same-store sales and new store openings. Despite facing ongoing macroeconomic pressures impacting its core customer base, DG managed to improve its gross profit margin, largely attributed to efforts in reducing inventory shrink and damages. The company continues to invest in strategic initiatives such as store remodels (Project Elevate and Project Renovate) and digital tools to enhance customer convenience and expand offerings. While expansion plans are robust, the company also initiated a store portfolio optimization review, which included some closures, notably impacting the pOpshelf concept. Financially, Dollar General maintained a strong liquidity position, supported by its revolving credit facility and cash flow from operations. The company repaid a significant portion of its long-term debt, reducing interest expenses. Management remains focused on operational efficiency, cost control, and team development as key priorities to navigate the competitive retail landscape and deliver shareholder value. Investors should monitor the company's ability to manage inflationary pressures, adapt to evolving consumer preferences, and the success of its ongoing strategic growth and efficiency initiatives.
Mar 20, 2026
2025
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 31, 2025
Dollar General Corporation (DG) reported its fiscal year 2024 results, facing challenges with declining operating profit and increasing SG&A expenses, partly due to significant impairment charges related to store portfolio optimization and a shift in sales mix towards lower-margin consumables. Despite a 5.0% increase in net sales driven by new store openings and a 1.4% rise in same-store sales, the company's gross profit rate decreased by 70 basis points primarily due to higher markdowns and increased inventory damages. The company plans to strategically close 141 underperforming stores (96 Dollar General and 45 pOpshelf) in the first quarter of fiscal 2025 to improve overall performance. Looking ahead, DG anticipates moderating new store growth while increasing its focus on remodels, including the 'Project Elevate' initiative, to enhance store performance and customer experience.
Mar 21, 2025
2024
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 2, 2024
Dollar General Corporation's (DG) 2023 10-K filing reveals a year of mixed results, with net sales increasing by 2.2% to $38.7 billion, driven primarily by new store openings and a slight increase in same-store sales. However, profitability was significantly impacted by operational challenges, including higher inventory shrink and increased markdowns, leading to a 26.5% decrease in operating profit and a 31.2% drop in net income compared to the prior year. The company faced headwinds from macroeconomic factors affecting its value-conscious customer base, including inflation and the winding down of government stimulus programs. Despite these challenges, DG continued its expansion, opening nearly 1,000 new stores and maintaining a strong commitment to its low-cost operating model and strategic initiatives aimed at improving sales and efficiency. The company also demonstrated robust cash flow generation, increasing operating cash flow by 20.5%. Looking ahead, Dollar General plans to moderate its new store growth, with a focus on optimizing existing operations and managing costs.
Mar 25, 2024
2023
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 3, 2023
Dollar General Corporation's (DG) 10-K filing for the fiscal year ended February 3, 2023, highlights a year of robust sales growth, driven primarily by price increases and an increase in average transaction value, although customer traffic saw a decline. The company expanded its store footprint with 1,039 new store openings, contributing to a 10.6% increase in net sales. Despite challenges like higher inventory damages, increased SG&A expenses, and a higher LIFO provision, the company reported a slight increase in operating profit and maintained strong cash flow from operations. Strategic initiatives like DG Fresh and expansion into new markets, including Mexico, demonstrate a focus on future growth. Investors should note the persistent sales mix shift towards lower-margin consumables, which impacted gross profit margins, and the planned significant capital expenditures for fiscal year 2023, including new store openings and remodels, which will be funded through operating cash flow and existing credit facilities. The company also continues its share repurchase program and dividend payments, signaling a commitment to shareholder returns, though cautious management of inventory levels and supply chain costs remains crucial.
Mar 24, 2023
2022
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 28, 2022
Dollar General Corporation's 2021 Form 10-K report highlights a resilient business model focused on value and convenience, serving a broad customer base across 18,190 stores in 47 states. The company navigated the ongoing impacts of the COVID-19 pandemic, which influenced consumer behavior towards trip consolidation and increased average transaction amounts, particularly for consumables. While facing supply chain disruptions and increased costs for transportation and labor, Dollar General continued to invest in strategic initiatives like DG Fresh, pOpshelf, and digital tools to drive profitable growth and enhance customer experience. The company reported net sales of $34.22 billion, a slight increase of 1.4% over 2020, driven by new store openings, though same-store sales saw a decrease of 2.8% primarily due to reduced customer traffic. Operating profit decreased by 9.4% to $3.22 billion, reflecting increased selling, general, and administrative expenses and higher transportation costs. Despite these pressures, Dollar General maintained a strong focus on operational efficiency and shareholder returns, evidenced by continued share repurchases and a planned increase in quarterly cash dividends.
Mar 18, 2022
2021
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 29, 2021
Dollar General Corporation's 10-K filing for the fiscal year ending January 29, 2021, reveals a company that navigated the COVID-19 pandemic with remarkable resilience, reporting significant increases in net sales and net income. The company experienced a substantial surge in demand, particularly for consumable products, leading to a 21.6% increase in net sales to $33.7 billion. This growth was driven by a 16.3% increase in same-store sales, largely due to higher average transaction amounts as customers consolidated shopping trips. Despite increased operating expenses related to the pandemic, such as employee bonuses and safety measures, these were more than offset by the higher sales volume, resulting in a 55% increase in net income to $2.66 billion. The company's strategic initiatives, including the "DG Fresh" rollout and expansion of its non-consumables assortment, appear to be contributing positively, although the company acknowledges potential ongoing challenges with sales mix shifting back towards consumables. Dollar General also continued its aggressive share repurchase program and dividend payments, signaling confidence in its financial health and commitment to returning capital to shareholders. The outlook for the upcoming year suggests continued store growth through new openings and remodels, demonstrating a focus on long-term expansion alongside operational efficiencies.
Mar 19, 2021
2020
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 31, 2020
Dollar General Corporation (DG) filed its 10-K for the fiscal year ended January 31, 2020, presenting a stable performance characterized by continued store growth and a focus on its value and convenience proposition. The company operates as a leading discount retailer with a significant store footprint across the United States, primarily serving value-conscious customers. The report highlights consistent same-store sales growth for 30 consecutive years prior to this filing, underscoring the resilience of its business model. Financially, Dollar General demonstrated solid top-line growth with an 8.3% increase in net sales year-over-year, driven by both new store openings and positive same-store sales growth. Profitability also saw an improvement, with operating profit up 8.8% and diluted earnings per share increasing to $6.64. The company continued to invest in its growth strategy through new store openings and remodels, and also returned capital to shareholders via dividends and share repurchases, signaling confidence in its ongoing operational and financial health. The company also acknowledged the emerging COVID-19 outbreak as a potential factor, though it did not anticipate a material impact on its financial results for the upcoming fiscal year at the time of filing.
Mar 19, 2020
2019
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 1, 2019
Dollar General Corporation's 2018 10-K filing highlights a company with a robust business model focused on providing essential, everyday items at low prices in convenient locations. The company operates over 15,000 stores across 44 states, demonstrating significant scale and reach within the U.S. discount retail market. A key strength is its 29th consecutive year of positive same-store sales growth, indicating strong customer loyalty and a resilient value proposition that appeals across various economic conditions. Financially, the company shows consistent revenue growth, with a 9.2% increase in net sales for fiscal year 2018 compared to 2017, driven primarily by an increase in average transaction amount and new store openings. While gross profit margin saw a slight decrease due to higher markdowns and a shift towards lower-margin consumables, operating profit and net income showed positive growth. Dollar General also continues to return capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value. The company is actively investing in strategic initiatives, including new store development, remodels, and technological enhancements, to sustain its growth trajectory and competitive position.
Mar 22, 2019
2018
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 2, 2018
Dollar General Corporation, as of its March 23, 2018, 10-K filing, stands as a leading discount retailer in the U.S., operating over 14,600 stores across 44 states. The company's business model is centered on providing essential everyday and household needs at "everyday low prices" (typically $10 or less) within convenient, small-box locations, catering to a value-conscious customer base, often with low or fixed incomes. This strategy has fueled 28 consecutive years of positive same-store sales growth prior to this filing. Financially, the company demonstrated solid performance in fiscal year 2017, with net sales increasing by 6.8% year-over-year, driven by a 2.7% same-store sales increase and contributions from new store openings. While the gross profit rate saw a slight decrease due to a shift towards higher-volume, lower-margin consumables, and increased transportation costs, operating profit remained robust. A significant factor influencing net income was the impact of the Tax Cuts and Jobs Act, which led to a substantial reduction in the effective income tax rate. The company continued to prioritize shareholder returns through share repurchases and dividend payments, signaling a commitment to capital discipline and growth.
Mar 23, 2018
2017
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 3, 2017
Dollar General Corporation's (DG) 2017 10-K filing highlights a period of continued growth and strategic focus on its core business model of providing value and convenience to a broad customer base. The company operated over 13,400 stores across 44 states, emphasizing its presence in rural, suburban, and urban communities. Its business model is centered on offering everyday low prices on a focused assortment of consumables, seasonal items, home products, and apparel, catering to value-conscious consumers. The report details a 27th consecutive year of positive same-store sales growth, underscoring the resilience of its value proposition across various economic conditions.
Mar 24, 2017
2016
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 29, 2016
Dollar General Corporation's 2016 10-K filing reveals a company focused on consistent growth and operational efficiency. The retailer, a significant player in the discount consumer goods market, emphasizes its value and convenience proposition as key drivers of its success. With a strategy centered on profitable sales growth, capturing new opportunities, maintaining a low-cost structure, and investing in its workforce, Dollar General demonstrated resilience and expansion during the fiscal year ended January 29, 2016. Financially, the company reported an increase in net sales and operating profit, supported by a solid same-store sales growth. Strategic initiatives, such as improving in-stock levels, expanding private brands, and optimizing its supply chain, contributed to its performance. The company continued its expansion by opening new stores and remodeling existing ones, while also focusing on enhancing shareholder value through share repurchases and dividend payments. Despite facing a competitive retail landscape and economic uncertainties that affect its core customer base, Dollar General appears well-positioned due to its strong business model and strategic execution.
Mar 22, 2016
2015
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 30, 2015
Dollar General Corporation's 2014 10-K filing reveals a company focused on consistent growth and operational efficiency. The retailer experienced an 8.0% increase in net sales to $18.9 billion, driven by a 2.8% same-store sales growth, indicating a strong value proposition and convenience appeal for its customer base. The company continued its expansion with 700 new stores opened in 2014, and plans for further expansion in 2015. While the gross profit rate saw a slight decline due to the inclusion of lower-margin consumables like tobacco and perishables, the company is focused on enhancing this through cost reductions and private brand expansion. Management's priorities for driving productive sales growth, enhancing gross profit, leveraging process improvements for cost reduction, and strengthening its culture of "serving others" remain central to its strategy. The company also announced a shift towards returning capital to shareholders, initiating quarterly cash dividends and continuing its share repurchase program. Despite facing a competitive retail landscape and potential economic headwinds impacting its value-conscious customer base, Dollar General demonstrates a resilient business model with clear strategic priorities for continued profitable growth.
Mar 20, 2015
2014
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 31, 2014
Dollar General Corporation's 2014 10-K filing highlights a year of solid growth, with net sales increasing 9.2% to $17.5 billion, driven by a 3.3% same-store sales increase and the opening of 650 new stores. The company's strategic expansion into tobacco and expanded perishables offerings positively impacted customer traffic and transaction amounts, though it slightly compressed gross profit margins. Operating profit saw a 4.9% increase, and net income grew 7.6% to $1.03 billion, translating to diluted earnings per share of $3.17. The company successfully managed operating expenses, with SG&A as a percentage of sales decreasing due to efficiency improvements and reduced incentive compensation. Financially, Dollar General executed a significant refinancing in April 2013, securing a new unsecured credit agreement and issuing senior notes, which improved its debt structure and reduced interest expense. The company also continued its share repurchase program, returning capital to shareholders. Looking ahead, Dollar General remains focused on its four key operating priorities: driving sales growth, enhancing gross profit rates, leveraging process improvements for cost reduction, and strengthening its culture of service. The company plans to continue its aggressive store expansion strategy, opening 700 new stores in fiscal year 2014, underscoring its confidence in its growth model and ability to serve value-conscious consumers.
Mar 20, 2014
2013
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 1, 2013
Dollar General Corporation's 2013 10-K report highlights a strong fiscal year ending February 1, 2013, characterized by consistent growth and strategic expansion. The company, the largest discount retailer in the U.S. by store count, demonstrated resilience by achieving its 23rd consecutive year of same-store sales growth. This performance underscores the effectiveness of its value and convenience-driven business model, which caters to a broad customer base, particularly during challenging economic times. Key drivers of success included disciplined store growth, strategic remodels and relocations, and a focus on operational efficiencies. The company also advanced its financial health through debt management and share repurchases, positioning itself for continued growth and shareholder value creation.
Mar 25, 2013
2012
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 3, 2012
Dollar General Corporation's 2011 10-K filing highlights a year of solid performance, marked by a 13.6% increase in total sales driven by a 6.0% same-store sales growth. The company demonstrated operational efficiency, with operating profit increasing by 17.0% and a 61 basis point reduction in SG&A expenses as a percentage of sales. This growth was achieved despite inflationary pressures on product costs and increased diesel fuel expenses. The company continued its store expansion strategy, opening 625 new stores and remodeling or relocating 575 existing ones, including the expansion of its Dollar General Market concept. Financial health was further strengthened by a reduction in long-term obligations by $670 million and a $500 million share repurchase program authorization. For investors, Dollar General's consistent same-store sales growth indicates a resilient business model, less susceptible to economic downturns due to its focus on value-conscious consumers and essential merchandise. The company's strategic priorities—driving sales, increasing gross margins, reducing costs through process improvements and IT, and fostering a culture of service—are clearly articulated and reflected in its financial results. The expansion into new markets and store formats, alongside effective cost management and a focus on private brands, positions the company for continued growth. Investors should note the company's ongoing commitment to share repurchases and debt reduction as key capital allocation strategies.
Mar 22, 2012
2011
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 28, 2011
Dollar General Corporation's 2011 10-K filing reveals a company demonstrating resilience and growth, particularly notable given the economic environment of the preceding years. The company reported a significant increase in net sales and operating profit for the fiscal year ended January 28, 2011, driven by strong same-store sales growth and strategic expansion. Dollar General continued to execute its business model focused on offering value and convenience, operating nearly 9,500 stores across 35 states. The company's financial performance was bolstered by effective category management, private brand expansion, and cost control initiatives. Despite facing rising commodity and fuel costs, Dollar General maintained its commitment to everyday low prices while showing improvements in gross profit margins and operating efficiency.
Mar 22, 2011
2010
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 29, 2010
Dollar General Corporation's 2010 10-K filing reveals a company in strong growth and operational improvement, exiting fiscal year 2009 with significant increases in sales and profitability. The company emphasizes its value and convenience proposition, which has resonated with customers, leading to a 20th consecutive year of same-store sales growth. Key financial highlights include a 12.8% increase in total sales, driven by a robust 9.5% same-store sales growth, and a significant improvement in gross profit margins. The company has also successfully managed its cost structure, leading to a decrease in SG&A as a percentage of sales, even with IPO-related expenses. Operationally, Dollar General is focused on expanding its store base, planning to open 600 new stores in fiscal year 2010, in addition to remodeling and relocating existing ones. The company's strategic priorities include driving productive sales growth, increasing gross margins through category management and sourcing efficiencies, leveraging technology for cost reduction, and strengthening its corporate culture. Despite substantial debt, the company has made progress in deleveraging, using proceeds from its recent IPO to redeem a significant portion of its long-term obligations.
Mar 31, 2010
2009
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 30, 2009
Dollar General Corporation's 2009 10-K filing reveals a company that, despite being categorized as a non-accelerated filer, demonstrated significant operational improvements and sales growth in the fiscal year ending January 30, 2009. The company achieved a 10.1% increase in total sales to $10.5 billion, driven by a robust 9.0% same-store sales growth. This performance was bolstered by a favorable economic environment where consumers increasingly sought value, benefiting Dollar General's low-price strategy. The report highlights the company's strategic focus on four key operating priorities: driving productive sales growth, increasing gross margins, leveraging process improvements to reduce costs, and strengthening its culture. These initiatives, coupled with effective cost management and a diversified merchandise mix heavily weighted towards consumables, positioned Dollar General to navigate the challenging economic landscape. However, the company's substantial debt, incurred in relation to a 2007 merger, remains a significant factor, impacting interest expenses and financial flexibility, as noted in the risk factors.
Mar 24, 2009
2008
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 1, 2008
Dollar General Corporation's March 28, 2008 10-K filing reveals a company undergoing a significant transition following its acquisition by KKR in July 2007. The report details the company's strategic initiatives, including 'Project Alpha,' aimed at improving store performance, merchandising, and real estate strategies. While the company experienced net sales growth of 3.5% in fiscal 2007, driven by a 2.1% same-store sales increase, it reported a net loss for the combined periods. This loss was significantly impacted by merger-related costs, including transaction expenses and increased interest expense due to substantial new debt financing. The company operates a vast network of over 8,200 discount retail stores primarily in rural and small markets, emphasizing value and convenience. Its business model relies on everyday low prices, with a majority of products priced at $10 or less. Key financial priorities for 2008 include productive sales growth, improving gross margins through various initiatives, enhancing operational processes, and strengthening its culture. Despite the reported net loss in 2007, cash flow from operations increased, and management expressed confidence in its ability to fund obligations and capital spending with existing cash and credit facilities.
Mar 28, 2008
2007
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 2, 2007
Dollar General's 10-K for fiscal 2006 (ended February 2, 2007) shows a sharp earnings deterioration driven by a deliberate strategic reset. Net sales rose 6.8% to $9.17 billion and same-store sales increased 3.3%, but net income fell 60.6% to $137.9 million, or $0.44 per diluted share, versus $1.08 in 2005. The gross profit rate dropped 289 basis points to 25.8%, largely because of $279.1 million in markdowns at cost tied to the decision to abandon the packaway inventory model and clear out seasonal, home and apparel merchandise. Operating margin compressed to 2.7% from 6.5%, and return on average equity fell to 8.0% from 20.9%. Management is guiding to a low-27% gross margin in fiscal 2007, with recovery targets of roughly 28% in 2008 and 29% in 2009. Balance sheet and cash flow remain sound. Cash and equivalents were $189.3 million, inventories were $1.43 billion, and there were no borrowings under the $400 million revolver. Operating cash flow was $405.4 million, and the company returned capital through $79.9 million of buybacks and $62.5 million of dividends. The company plans to close about 400 underperforming stores by the end of fiscal 2007, open about 300 new stores, and remodel or relocate about 300 more. Capital expenditures are projected at $180-200 million for 2007. The filing also discloses a pending $22.00-per-share all-cash take-private by Kohlberg Kravis Roberts & Co. (signed March 11, 2007), which investors should weigh against the stock's standalone outlook. The agreement carries a termination fee of up to $225 million, and seven shareholder class actions challenging the price have been filed. Several wage-and-hour collective actions covering store managers also remain pending and could carry material exposure.
Mar 29, 2007
2006
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 3, 2006
Dollar General Corporation's 2006 10-K filing highlights its strong position as a leading discount retailer targeting low-to-middle income consumers through its extensive network of over 8,000 conveniently located stores. The company's strategy centers on offering a focused assortment of quality, consumable merchandise at everyday low prices. In the fiscal year ended February 3, 2006, Dollar General demonstrated consistent growth, with net sales increasing by 12.0% and same-store sales up by 2.0%, indicating successful execution of its growth strategy through new store openings and improved same-store performance. The company is actively investing in infrastructure, including expanding its distribution center network and implementing technology initiatives like 'EZstore' to improve operational efficiency and inventory management. Expansion remains a key focus, with plans to open approximately 800 new traditional Dollar General stores and at least 30 Dollar General Market stores in 2006. Despite facing a competitive retail landscape and economic pressures affecting its customer base, Dollar General's robust store base, strategic cost controls, and focus on highly consumable products position it for continued growth. Investors should note the company's efforts to manage inventory effectively and its plans for further store expansion and operational improvements.
Mar 21, 2006
2005
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 28, 2005
Dollar General Corporation's 2005 10-K filing highlights a company in robust growth mode, expanding its store footprint significantly and focusing on operational efficiencies. The company's strategy centers on providing essential, everyday low-priced merchandise in convenient, small-format stores, primarily serving low- to middle-income customers. Investments in infrastructure, including new distribution centers and technology, are key to supporting this expansion and improving supply chain management. The filing also addresses recent challenges, including a significant SEC investigation that led to a $10 million civil penalty and a restatement of financial statements due to accounting errors related to leases. Furthermore, a collective action lawsuit regarding overtime pay for store managers represents an ongoing legal risk. Despite these headwinds, the company demonstrates strong revenue growth and is committed to enhancing shareholder value through strategic expansion and operational improvements.
Apr 12, 2005
2004
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 30, 2004
Dollar General Corporation's 2003 Form 10-K highlights a year of significant operational focus and strategic expansion. The company continued its aggressive store opening strategy, adding 673 new locations and ending the fiscal year with 6,817 stores. This growth was complemented by a 4.0% increase in same-store sales, demonstrating continued customer demand and effective merchandising strategies, particularly in the highly consumable category. The company also made substantial investments in its infrastructure, including expanding distribution centers and implementing new technology systems aimed at improving supply chain efficiency and inventory management. Despite facing challenges such as increased SG&A expenses and ongoing litigation related to past restatements (with an agreement in principle reached for a $10 million civil penalty), Dollar General demonstrated robust sales growth and improved gross profit margins. The company's focus on cost control, strategic store placement in underserved communities, and a strong emphasis on consumable basics positions it for continued expansion and market penetration.
Mar 16, 2004
2003
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 31, 2003
Dollar General Corporation's 2002 Form 10-K details a year of significant growth and operational improvements, alongside ongoing efforts to address past accounting restatements. The company continued its aggressive store expansion, adding 622 net new stores to reach a total of 6,113 by year-end. This growth was driven by a strategic focus on convenient, small-format stores serving low- to middle-income families, offering a focused assortment of everyday consumable basics at low prices. The company also made substantial investments in its distribution network and implemented new technology systems to enhance efficiency and inventory management. Financially, the company reported strong net sales growth of 14.6%, reaching $6.1 billion, with a same-store sales increase of 5.7%. Net income also saw a substantial increase to $264.9 million. However, the report also highlights the ongoing SEC investigation related to past accounting issues, which led to significant litigation settlement expenses in prior years. The company ended the fiscal year with improved liquidity, a reduced debt load, and continued its focus on cost controls and operational efficiencies to maintain its competitive edge in the discount retail sector.
Mar 19, 2003
2001
DOLLAR GENERAL CORP Annual Report, Year Ended Dec 31, 2001
Dollar General Corporation's 2001 Form 10-K details a period of significant growth and operational adjustments. The company expanded its store footprint by a substantial margin, aiming to serve predominantly low- to middle-income families in convenient, small-format stores. This expansion was supported by strategic investments in distribution centers and technology to enhance operational efficiency and inventory management. A key event impacting the company during this period was the accounting restatement for fiscal years 1998 and 1999, which led to significant litigation, including a class-action settlement of $162 million. Despite these legal challenges and associated expenses, the company demonstrated strong net sales growth, driven primarily by new store openings and a notable increase in same-store sales in 2001, indicating a recovery in sales performance compared to the prior year. Investors should note the company's continued focus on cost control and its strategy of offering essential, everyday merchandise at low prices.
Apr 2, 2002
2001
DOLLAR GENERAL CORP Annual Report, Year Ended Feb 2, 2001
Dollar General Corporation's 2001 10-K filing reveals significant financial restatements and ongoing legal proceedings stemming from accounting issues. The company is restating its financial statements for fiscal years 1998 and 1999, and revising fiscal year 2000 information, impacting previously reported net income and earnings per share. A substantial litigation settlement expense of $162.0 million was recognized in fiscal year 2000 related to class action lawsuits. Despite these challenges, Dollar General continues its growth strategy, expanding its store base significantly from 3,687 stores in 1998 to 5,000 stores by February 2, 2001, and further to 5,562 by December 14, 2001. The company emphasizes its focus on low- and middle-income families, convenient store locations, and everyday low prices. Infrastructure investments in distribution centers and technology are ongoing to support this expansion.
Jan 14, 2002
2000-A
DOLLAR GENERAL CORP Annual Report (Amendment), Year Ended Jan 28, 2000
Dollar General's amended 10-K/A (Amendment No. 1) for the fiscal year ended January 28, 2000 was filed solely to add the unqualified audit opinion of Deloitte & Touche LLP, which was omitted from the original April 2000 filing. The amendment restates Item 8 in full, so the financial statements themselves are unchanged from the original report. For fiscal 1999, the company reported net sales of $3.89 billion, up about 20.7% from $3.22 billion, with net income of $219.4 million (5.6% of sales) versus $182.0 million a year earlier, and diluted EPS of $0.81 versus $0.68 (both after retroactive stock split adjustments). The balance sheet strengthened over the year. Shareholders' equity rose to $925.9 million from $725.8 million, driven by earnings and the non-cash conversion of 1.7 million preferred shares into 40.9 million common shares, which eliminated the preferred and treasury stock balances. Total assets grew to $1.45 billion. Inventory increased to $985.7 million, about 21% higher, which is substantial relative to sales growth and warrants monitoring. Long-term debt remained negligible at $1.2 million, and the company had no borrowings outstanding under its $175 million revolver or its seasonal credit lines at year-end. Cash flow from operations declined to $140.4 million from $218.6 million, pressured by a $174 million inventory build and a $51 million reduction in accrued expenses, the latter largely reflecting the prior year's $68 million sale/leaseback advance that did not recur. Management's disclosures also show a material operating lease commitment base, with minimum annual rentals of $149.5 million in 2000 and $351.4 million of residual value guarantees, and a pending LIFO-to-cost-of-goods adjustment and interest rate swaps of $200 million. Investors should weigh the strong earnings and balance sheet against weaker operating cash generation and rising inventory levels.
Jul 31, 2000
2000
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 28, 2000
Dollar General's 10-K for fiscal 1999 (year ended January 28, 2000) shows a retailer executing a rapid store-expansion strategy while maintaining strong profitability. Net sales rose 20.7% to $3.89 billion, driven by 607 net new stores and a 6.4% same-store sales increase. Net income grew 20.5% to $219.4 million, and diluted EPS was $0.81, up from $0.68. Gross margin held steady at 28.2%, and SG&A rose modestly to 19.3% of sales, mainly from higher store labor and rent. Return on average equity was 26.6%, and the balance sheet remained conservative, with total debt of only $2.4 million at year-end and short-term borrowings fully repaid. The key investor considerations are growth-related capital needs and margin pressure ahead. Management plans 675-700 new stores and 200-250 relocations in 2000, with capital expenditures of roughly $270-280 million, nearly double 1999's $152.7 million. Management expects total sales to rise at least 20% and earnings to grow at least 20%, but it also anticipates a slight gross margin decline from higher distribution costs and lower initial markups, and a higher interest expense ratio. The company is also building out distribution capacity, with new DCs in Alachua, Florida and Zanesville, Ohio. The filing also highlights a few structural points. Operations are concentrated in 24 states, primarily in the Midwest and Southeast, and the customer base is largely low- and fixed-income households. Cash flow from operations weakened to $140.4 million from $218.6 million, largely because of the reversal of 1998 sale/leaseback advances in accrued expenses. Inventory growth of $174 million absorbed much of the cash. Investors should therefore watch whether the company can sustain its growth rate and margins while funding a much larger capital program.
Apr 27, 2000
1999
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 29, 1999
Dollar General's fiscal 1998 10-K (year ended January 29, 1999) shows a retailer executing a rapid store expansion while maintaining strong profitability. Net sales rose 22.6% to $3.22 billion, driven by 518 net new stores (ending at 3,687 across 24 states) and an 8.3% same-store sales increase. Net income grew 25.9% to $182.0 million, and diluted EPS reached $0.85, up from $0.67. Return on average equity was 27.8%, and the company's total debt was nearly eliminated to $1.5 million at year-end, with all short-term borrowings repaid from internally generated funds. The key investor considerations are margin pressure and working capital intensity. Gross margin slipped to 28.1% from 28.3% due to higher inventory shrinkage (2.5% of sales versus 2.2%), and management expects gross profit as a percentage of sales to decline slightly in 1999 as it prioritizes low prices. Inventory grew to $811.7 million, up roughly 28%, outpacing sales growth, and accounts payable and accrued expenses increased to fund it. SG&A continued to fall as a share of sales (19.1%, the ninth consecutive annual decline), which is the core of the operating leverage story. Looking ahead, the company plans 575 to 600 new stores in 1999, 200 to 250 relocations, and two additional distribution centers, with capital expenditures projected at about $120 million, funded internally. The company also flagged an effective tax rate increase to 36.5% and disclosed a $225 million leveraged lease facility and interest rate swaps. Year 2000 remediation costs were modest ($400,000 to $600,000), though the company acknowledged dependence on third-party vendor readiness. Investors should weigh the strong growth and returns against the rising inventory intensity and the sustainability of store-level economics as expansion continues.
Apr 26, 1999
1998
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 30, 1998
Dollar General's fiscal 1998 10-K (year ended January 30, 1998) shows a retailer executing a rapid store-expansion strategy while sustaining strong profitability. Net sales rose 23.1% to $2.63 billion, driven by 435 net new stores (3,169 total) and an 8.4% same-store sales increase. Net income grew 25.6% to $144.6 million, and diluted EPS reached $0.84 (up from $0.67), with net margin of 5.5%. Return on average equity was 27.0% and return on average assets 17.7%, reflecting a capital-light, low-debt model: total debt was only $24.7 million against $583.9 million of shareholders' equity, and interest expense fell to $3.8 million. The key watch items for investors are margin pressure and working capital. Gross margin was flat at 28.3%, but management expects it to decline slightly in 1999 due to a shift toward hardlines, higher freight costs, and the introduction of 700 faster-turning items. Inventory rose sharply to $632 million (from $476 million), and operating cash flow fell to $139.1 million from $170.1 million, largely because of that inventory build. Capital expenditures were $107.7 million, and 1999 plans call for 500 to 525 new stores and $100 to $125 million in capex, to be funded internally. The company is also building out distribution capacity, with a new Indianola, Mississippi center and two additional ~1 million square foot facilities planned. Supporting the growth thesis are a shareholder-friendly backdrop and a relatively clean risk profile. The company has paid dividends since 1975, increased dividends per share, and repurchased stock. Credit facilities were expanded in March 1998 to $175 million revolving and $225 million leveraged lease capacity, both expiring in 2002. Management reported no material pending legal proceedings and said Year 2000 costs would not be material. The stock traded between $16.75 and $32 (split-adjusted) during fiscal 1998, and the 5-for-4 split distributed March 23, 1998 was a further adjustment.
Apr 20, 1998
1997
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 31, 1997
Dollar General Corporation's 10-K for the fiscal year ended January 31, 1997 describes a year of record sales, record earnings, and rapid expansion. Net sales rose 21.0% to $2.13 billion, driven by 318 net new stores (2,734 total) and an 8.2% same-store sales increase. Net income grew 31% to $115.1 million, the first time the company crossed $100 million, and return on average equity improved to 25.4% from 23.6%. Management also reported that the net operating expense ratio fell to a record low of 19.4% of sales, reflecting better labor productivity, lower advertising costs, and lower self-insurance expense. Gross margin compressed modestly to 28.3% from 28.5%, as the shift toward lower-margin hardlines (75% of sales, up from 70%) and continued price reductions offset gains from lower inventory shrinkage (2.7% of sales, down from 3.4%). Working capital management improved markedly: inventory fell 2.5% to $476 million, operating cash flow swung to $170 million from negative $17.8 million a year earlier, and total debt dropped to $43.1 million, leaving a debt-to-equity ratio of 8.9%. Capital expenditures were $84.4 million, with a significant share directed to the South Boston, Virginia distribution center and a planned 1998 expansion. Looking ahead, management guided to 400 to 450 new stores in 1998, capital spending of $100 to $105 million, and a store reformatting program shifting space toward consumables. Key risks include the minimum wage increase (an estimated $8.0 million added wage expense in 1998), margin pressure from the mix shift, the execution of multiple distribution and technology projects including a new POS system, and the company's reliance on short-term seasonal borrowing. The company also completed a five-for-four stock split in February 1997 and repurchased 2,000,000 shares during the year.
Apr 28, 1997
1996
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 31, 1996
Dollar General's fiscal 1996 (year ended January 31, 1996) was a record year for sales, earnings, and new store openings, but operating performance deteriorated in the back half of the year. Net sales rose 21.8% to $1.76 billion, driven by 357 net new stores (2,416 total, up from 2,059) and a 5.1% same-store sales gain, though same-store growth slowed sharply from 13.5% in 1995 and was the first year in five without double-digit growth. Net income grew 19.3% to $87.8 million, and EPS (split-adjusted) rose to $1.00 from $0.85, extending a run of more than 15% annual EPS growth. Beneath the headline numbers, however, the company faced clear problems: inventory turns fell from 3.0 to 2.5, merchandise inventory rose 37% to $488 million, operating cash flow turned negative at -$17.8 million, and short-term borrowings more than doubled. Management attributed these issues largely to start-up inefficiencies at the Ardmore, Oklahoma distribution center, which caused in-stock problems and lost sales in the first half of the year, along with a sluggish retail environment in the second half. Margin pressure was also evident. Gross margin declined about 50 basis points to 28.5%, driven mainly by inventory shrinkage that rose to 3.41% from 2.98%, along with an unfavorable shift toward lower-margin hardlines. Return on average equity fell to 23.6% from 26.1%, and return on average assets fell to 14.4% from 15.7%. Operating expense leverage remained a strength, with selling, general and administrative expense falling to a record-low 20.1% of sales, helped by fewer direct-mail circulars and lower self-insurance costs. Management has announced corrective actions for 1997, including a weekly delivery schedule, a shrinkage control program, an expanded interim inventory count, and a bonus structure more heavily weighted toward shrink results. The company also plans about 350 new stores in 1997 and a fourth distribution center in South Boston, Virginia. For investors, the central question is whether the company can restore inventory discipline and margins while sustaining its rapid store expansion. Leadership gaps add to the uncertainty: the CFO position has been vacant since August 1995, and the company intends to hire a President to separate operating duties from the CEO role. The balance sheet remains conservative, with total debt at 18.3% of equity and a current ratio of 2.0, but the company's reliance on short-term borrowings to fund inventory has risen considerably. The stock, recently listed on the NYSE and split five-for-four in April 1996, traded in a range of roughly $15.75 to $27 during fiscal 1996.
Apr 29, 1996
1995-A
DOLLAR GENERAL CORP Annual Report (Amendment), Year Ended Jan 31, 1995
Dollar General's fiscal 1995 10-K (year ended January 31, 1995) shows higher earnings and cash generation, but the cash flow statement points to a heavier investment cycle. Net income rose about 52% to $73.6 million from $48.6 million, and operating cash flow increased to $43.3 million from $36.2 million. The company's cash flow shows a large build in merchandise inventories of $96.1 million, up from $43.2 million, while accounts payable growth of $30.6 million partly funded that build. Capital spending on property and equipment nearly doubled to $65.8 million from $35.0 million, so free cash flow (operating cash flow less capex) turned negative at roughly -$22.5 million, compared with about +$1.2 million in fiscal 1994. Financing activity was modest on a net basis. Net short-term borrowings increased by about $11.7 million, dividends paid rose to $10.6 million, and cash ended the year at $33.0 million, down slightly from $35.4 million. The company issued $200.5 million of preferred stock and used the same amount to purchase treasury stock, a transaction that leaves no net cash effect but suggests a significant capital structure change. The excerpt does not include the income statement, balance sheet, or notes, so revenue, margins, store counts, and the purpose and terms of the preferred transaction cannot be assessed from it. The independent auditor, Coopers & Lybrand, issued an unqualified opinion dated March 6, 1995.
May 4, 1995
1995
DOLLAR GENERAL CORP Annual Report, Year Ended Jan 31, 1995
Dollar General Corporation's 10-K for the fiscal year ended January 31, 1995 reports a strong year of growth and profitability. Net sales rose 27.9% to $1,448.6 million, driven by 259 net new stores (2,059 total at year-end across 24 states) and a 13.5% increase in same-store sales. Net income climbed 51.6% to $73.6 million, and net margin expanded to 5.1% from 4.3%. The company reported its fourth consecutive year of double-digit same-store sales growth, with the improvement attributed to everyday low pricing, better in-stock positions, and a leaner overhead structure, as SG&A fell to 20.7% of sales from 21.7%. Return metrics improved meaningfully, with return on average equity at 26.1% and return on average assets at 15.7%. The company accelerated its expansion, opening 302 stores and planning 330-350 openings in 1996, while building a third distribution center in Ardmore, Oklahoma at a cost of $23.3 million. Capital expenditures rose to $65.8 million, and the company said growth was financed without a significant increase in debt. Total debt was $35.8 million, and the total debt-to-equity ratio was 11.1%. Investors should also note several structural items. The stock began trading on the NYSE on February 1, 1995, after previously trading on Nasdaq. A five-for-four stock split was distributed March 6, 1995. In August 1994, the company repurchased 8.58 million common shares from CTS, Inc., a Turner family holding company, in exchange for Series A Convertible Junior Preferred Stock, which is a notable related-party transaction. Working capital pressures from seasonal inventory build and the shift toward larger, more expensive distribution infrastructure bear watching, as does the planned reduction in advertising circulars and the expected rise in the effective tax rate to 38.5% for 1996.
May 1, 1995
1994-A
DOLLAR GENERAL CORP Annual Report (Amendment), Year Ended Jan 31, 1994
Dollar General Corporation's 10-K for the fiscal year ended January 31, 1994 shows a retailer executing a store-growth and same-store-sales playbook. Net sales rose 23.1% to $1.133 billion, crossing the $1 billion mark, while same-store sales grew 12.7% (following 15.5% in 1993 and 11.2% in 1992). Net income increased 36.5% to $48.6 million, and net margin expanded to 4.3% from 3.9%. The company opened a net 183 stores, ending the year with 1,800 stores across 24 states, and its return on average equity reached 22.6%. The quality of the gains is mostly sound. Gross margin slipped 0.2 points to 28.8% due to higher distribution costs, markdowns, and shrinkage, but SG&A fell to 21.7% of sales, the lowest expense ratio since 1984, which drove the operating margin higher to 7.1%. Inventory rose $43 million and was largely funded by growth in payables and accruals, and operating cash flow of $36.2 million was down 15% year over year. Working capital reached $166.8 million with a 2.1 current ratio, and total debt was modest at 10.4% of equity. Shrinkage rose to 2.7% of sales, which management called unacceptable and is addressing with bar-code scanning investment. The outlook is for continued expansion. Management plans to open roughly 180 net stores in fiscal 1995, with about 250 new openings and capital spending of $55 million, including a new 500,000 square foot Ardmore, Oklahoma distribution center. Investors should weigh the strong growth and returns against the risks of rising capex, a heavier inventory base, shrinkage pressure, and the company's dependence on sustained same-store sales gains and a low-income customer base.
Apr 27, 1994