10-KPeriod: FY2011

DOLLAR GENERAL CORP Annual Report, Year Ended Jan 28, 2011

Filed March 22, 2011For Securities:DG

Summary

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.

Financial Highlights

44 data points
Beta

Revenue

$13.04B

32.0% Gross Margin

Net Income

$627.86M

4.8% Net Margin

EPS (Diluted)

$1.82

Total Assets

$9.55B

Cash & Equivalents

$497.45M

Free Cash Flow

$824.68M

Financial Statements
Beta
Revenue$13.04B
Cost of Revenue$8.86B
Gross Profit$4.18B
SG&A Expenses$2.90B
Operating Income$1.27B
Interest Expense$273.99M
Net Income$627.86M
EPS (Basic)$1.84
EPS (Diluted)$1.82
Shares Outstanding (Basic)341.05M
Shares Outstanding (Diluted)344.80M

Key Highlights

  • 1Reported a 10.5% increase in net sales for fiscal year 2010, reaching $13.04 billion.
  • 2Achieved a 33.7% increase in operating profit, reaching $1.27 billion.
  • 3Expanded its store base to 9,414 locations across 35 states, with plans for further growth.
  • 4Demonstrated continued same-store sales growth, increasing by 4.9% in fiscal year 2010.
  • 5Increased gross profit margin to 32.0% from 31.3% in the prior year, aided by category management and private brand penetration.
  • 6Managed selling, general, and administrative expenses effectively, reducing them as a percentage of sales.
  • 7Generated strong cash flow from operations ($824.7 million) to support capital expenditures and debt reduction.

Frequently Asked Questions

For the fiscal year ended January 28, 2011, Dollar General reported a net sales increase of 10.5% to $13.04 billion and an operating profit increase of 33.7% to $1.27 billion. Gross profit margin improved to 32.0%, and diluted earnings per share were $1.82.

Dollar General plans to continue its growth through increasing same-store sales by refining merchandise offerings and store productivity, expanding its operating profit rate by managing costs and leveraging private brands, and growing its store base. The company planned to open approximately 625 new stores in fiscal year 2011 and remodel or relocate about 550 stores.

Key risks highlighted include the impact of current economic conditions on its value-conscious customer base, intense competition, rising fuel and commodity costs affecting profitability, potential disruptions to its distribution network, and the ability to attract and retain qualified employees. The company also noted risks associated with its substantial debt levels.

Dollar General intends to continue driving its private brand penetration, which generally have higher gross profit margins than national brands. In fiscal year 2010, private brand items represented approximately 22% of consumables sales, and the company was expanding these efforts into non-consumable offerings.