01—Abstract
Summary
Summary of the 10-K filed March 22, 2011. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Reported a 10.5% increase in net sales for fiscal year 2010, reaching $13.04 billion.
- Achieved a 33.7% increase in operating profit, reaching $1.27 billion.
- Expanded its store base to 9,414 locations across 35 states, with plans for further growth.
- Demonstrated continued same-store sales growth, increasing by 4.9% in fiscal year 2010.
- Increased gross profit margin to 32.0% from 31.3% in the prior year, aided by category management and private brand penetration.
- Managed selling, general, and administrative expenses effectively, reducing them as a percentage of sales.
- Generated strong cash flow from operations ($824.7 million) to support capital expenditures and debt reduction.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Dollar General Corp kept $0.05.
- Revenue$13.04B100.0%
- Cost of revenue−$8.86B68.0%
- Gross profit$4.18B32.0%
- Operating costs−$2.90B22.3%
- Operating income$1.27B9.8%
- Interest, other & tax−$646.2M5.0%
- Net income$627.9M4.8%
Where FY2011 revenue went
$13.04B- Cost of revenue: $8.86B, 68% of revenue
- SG&A: $2.90B, 22% of revenue
- Net income: $627.9M, 4.8% of revenue
- Interest, other & tax: $646.2M, 5.0% of revenue
Kept 4.8% as net incomeNet income $627.9M · 4.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed March 22, 2011Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $13.04B$11.80B | +10.5% |
| Cost of Revenue | $8.86B$8.11B | +9.3% |
| Gross Profit | $4.18B$3.69B | +13.2% |
| SG&A Expenses | $2.90B$2.74B | +6.1% |
| Operating Income | $1.27B$953.26M | +33.7% |
| Interest Expense | $273.99M$345.74M | −20.8% |
| Net Income | $627.86M$339.44M | +85.0% |
| EPS (Basic) | $1.84$1.05 | +75.2% |
| EPS (Diluted) | $1.82$1.04 | +75.0% |
| Shares Outstanding (Basic) | 341.05M322.78M | +5.7% |
| Shares Outstanding (Diluted) | 344.80M324.84M | +6.1% |
05—Questions
Frequently Asked Questions
What were Dollar General's key financial performance indicators for the fiscal year ended January 28, 2011?
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.
How is Dollar General planning to continue its growth?
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.
What are the main risks Dollar General highlighted in its filing?
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.
What is Dollar General's strategy regarding private brands?
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.
06—Continue