01—Abstract
Summary
Summary of the 10-K filed March 18, 2022. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Net sales increased by 1.4% to $34.22 billion in fiscal year 2021, primarily driven by new store openings.
- Same-store sales decreased by 2.8% in fiscal year 2021, reflecting a decline in customer traffic, though partially offset by an increase in average transaction amount.
- Operating profit decreased by 9.4% to $3.22 billion in fiscal year 2021, impacted by higher selling, general, and administrative expenses (up 6.0%) and increased transportation costs.
- The company continued its aggressive store expansion, opening 1,050 new stores in fiscal year 2021 and planning for approximately 1,110 new stores in fiscal year 2022.
- Dollar General is executing strategic initiatives including DG Fresh (cold chain distribution), pOpshelf (new concept stores), Fast Track (labor efficiency and self-checkout), and digital tools to enhance customer convenience and operational efficiency.
- The company returned capital to shareholders through share repurchases totaling $2.5 billion and paid cash dividends of $1.68 per share in fiscal year 2021.
- Supply chain disruptions and increased costs related to labor and transportation remain significant challenges, though mitigated by operational efficiencies and strategic sourcing.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Dollar General Corp kept $0.07.
- Revenue$34.22B100.0%
- Cost of revenue−$23.41B68.4%
- Gross profit$10.81B31.6%
- Operating costs−$7.59B22.2%
- Operating income$3.22B9.4%
- Interest, other & tax−$821.4M2.4%
- Net income$2.40B7.0%
Where FY2022 revenue went
$34.22B- Cost of revenue: $23.41B, 68% of revenue
- SG&A: $7.59B, 22% of revenue
- Net income: $2.40B, 7.0% of revenue
- Interest, other & tax: $821.4M, 2.4% of revenue
Kept 7.0% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed March 18, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $34.22B$33.75B | +1.4% |
| Cost of Revenue | $23.41B$23.03B | +1.6% |
| Gross Profit | $10.81B$10.72B | +0.9% |
| SG&A Expenses | $7.59B$7.16B | +6.0% |
| Operating Income | $3.22B$3.55B | −9.4% |
| Interest Expense | $157.53M$150.38M | +4.7% |
| Net Income | $2.40B$2.66B | −9.6% |
| EPS (Basic) | $10.24$10.70 | −4.3% |
| EPS (Diluted) | $10.17$10.62 | −4.2% |
| Shares Outstanding (Basic) | 234.26M248.17M | −5.6% |
| Shares Outstanding (Diluted) | 235.81M250.08M | −5.7% |
05—Questions
Frequently Asked Questions
What were the key financial results for Dollar General in fiscal year 2021?
In fiscal year 2021, Dollar General reported net sales of $34.22 billion, a 1.4% increase over 2020. Operating profit decreased by 9.4% to $3.22 billion. Net income was $2.40 billion, or $10.17 per diluted share.
How did the company's store growth perform, and what are the plans for expansion?
Dollar General expanded its store base significantly, opening 1,050 new stores in fiscal year 2021, bringing the total to 18,190 stores. The company plans to continue this growth trajectory with approximately 1,110 new store openings planned for fiscal year 2022, including expansion into Mexico.
What are the primary challenges and strategic initiatives Dollar General is focusing on?
The company faces challenges such as supply chain disruptions, increased transportation and labor costs, and inflationary pressures. To address these, Dollar General is focused on strategic initiatives including the expansion of its DG Fresh supply chain, the pOpshelf concept, digital tools for customer convenience, and operational efficiencies through programs like Fast Track. These initiatives aim to drive profitable sales growth and enhance shareholder value.
How is Dollar General returning capital to shareholders?
Dollar General actively returned capital to shareholders in fiscal year 2021 through share repurchases totaling $2.5 billion and by paying cash dividends amounting to $1.68 per share. The company's Board of Directors expects to continue these practices.
06—Continue