Dollar General Corp. (DG) announced, for fiscal 2017, the company’s net sales are forecasted to increase by approximately five to seven percent as compared with the prior guidance range of four to six percent. Same-store sales growth is unchanged from the prior guidance range of slightly positive to an increase of two percent. GAAP EPS is forecasted to remain consistent with the prior guidance range of $4.25 to $4.50.
For fiscal 2017, the company plans to open approximately 1,290 new stores in addition to remodeling or relocating 760 stores and to reduce the total projects for remodels and relocations by 140 to allow for organizational capacity to execute the incremental new store growth anticipated to result from the pending acquisition.
In April 2017, the Federal Trade Commission approved the company’s proposed purchase of 322 store locations in 36 states from a small-box multi-price point retailer. The transaction is expected to close during June 2017. The store sites are anticipated to be converted to the Dollar General banner by the end of November 2017. The company anticipates sales from the acquired sites to impact fiscal 2017 net sales by approximately 100 basis points. The company anticipates the acquisition will be modestly accretive to EPS for the fiscal year. An estimated $0.02 per share charge is forecasted in the second quarter.
The company’s net income and earnings per share for the 2017 first quarter were $279 million and $1.02, respectively, compared to net income and EPS of $295 million and $1.03, respectively, in the 2016 first quarter. EPS for the 2017 first quarter included a charge of approximately $0.01 related to the early retirement of long-term obligations.
First-quarter net sales increased 6.5 percent to $5.61 billion compared to $5.27 billion in the 2016 first quarter. Same-store sales in the 2017 first quarter increased 0.7 percent primarily due to an increase in average transaction amount, partially offset by a decline in traffic. The…