Seeking Alpha

Heard on Dollar General's (DG -6.5%) earnings call: 1) Plans to open 635 new stores in FY13,... (DG)

Heard on Dollar General's (DG -6.5%) earnings call: 1) Plans to open 635 new stores in FY13, including 20 Dollar General Market Stores. Total square footage will increase 7%. 2) Plans to improve inventory controls in 2013. Chinese New Year will be a focus as will "defensive" merchandising. 3) While selling cigarettes should boost sales, the company concedes the category is dying. Even so, expect a rollout in 2013. 4) CEO Rick Dreiling on sentiment: "I think the customer is fatigued, they're tired, they're scared." (webcast)
Comments (4)
  • TFCAB
    , contributor
    Comments (1917) | Send Message
     
    i thought when the consumer is tired and scared, they shop at DG. What a strange thing for a CEO of a value-price format to say. I thought they would thrive in a tight economy. Wal-mart is lov'in this economy. Our pain is their gain.
    11 Dec 2012, 02:58 PM Reply Like
  • $CLU
    , contributor
    Comments (207) | Send Message
     
    Yea, I agree TFCAB.
    What was that all about?
    Any other insight about record breaking numbers but CEO depressed about the business?
    11 Dec 2012, 03:12 PM Reply Like
  • Bill Investor 201
    , contributor
    Comment (1) | Send Message
     
    What are people's thoughts about a "buy" of DG? Experts were bullish on it ....before today they said that it was a buy at 47.00 Now today the CEO is painting a lesser picture, and the market is reacting and taking it down to 42 You think 42 is short lived, and the stock will bounce back. A tough economy should be a plus for DG Maybe their drop and lesser future earning forecast is signaling a better and more positive economy and a move away from discount stores???
    11 Dec 2012, 05:25 PM Reply Like
  • Brendan O'Boyle
    , contributor
    Comments (1032) | Send Message
     
    The sell off makes no sense, if you just read the quarterly report it sounds like a great quarter. But I'm biased and had been long since 42 sold at 55 and got back in at 49, a bit early as it turned out. Still like DG, but wait for it to stabilize before buying.

     

    I also have a pet peeve about penciling down earnings. Why do that when you reduce it by i think it was $50M a year down the road (vs 1.25B)? Then the CEO acts all glum on the earnings call. Seriously are you short your own stock?
    11 Dec 2012, 10:48 PM Reply Like
DJIA (DIA) S&P 500 (SPY)