Sat, Feb. 14, 9:36 AM
- Dollar General (NYSE:DG) could be a bargain at current levels, observes Barron's.
- Analysts think the company's failed attempt to land Family Dollar leaves it lean and in a better position to grow same-store sales than the Dollar Tree-Family Dollar combination.
- Merger-related expenses should also start to trail off.
- DG trades at 16.9X expected 2015 earnings, a valuation which might not fully factor in today's $2 gas environment and the improved employment situation in the U.S.
- The discounter is expected to report FQ4 earnings on March 19 with analysts calling for revenue of $4.955B and EPS of $1.17. Any improvement over FQ3's comp growth of 2.8% could help to reset expectations.
- YTD: DG -2.66% vs. S&P Retail ETF +2.09%.
Thu, Feb. 5, 9:08 AM
- Kraft Foods (NASDAQ:KRFT) has found a vibrant channel for its Velveeta brand in dollar stores.
- The company was very close to pulling the plug on the product last year amid soft grocery store sales.
- General Mills (NYSE:GIS) and Campbell Soup (NYSE:CPB) are also exploring selling more brands in dollar stores due to the potential for higher profit margins in certain categories.
- The development could aid the dollar store group (DLTR, DG, FDO) which has lost some quick-stop grocery market share to convenience stores.
Tue, Feb. 3, 5:44 PM
- Dollar Tree (NASDAQ:DLTR) says it has learned the FTC is reviewing more than 500 stores as it scrutinizes its plan to acquire Family Dollar (NYSE:FDO), after previously believing that the FTC would require the divestiture of no more than ~300 stores, according to an SEC filing.
- Despite the caution, DLTR still expects the total number of divestitures to be about 300, and hopes to reach an agreement with the FTC by the end of the month.
- FDO shareholders approved a deal last month to be sold to DLTR, choosing regulatory certainty over a riskier but higher offer from Dollar General (NYSE:DG).
Thu, Jan. 22, 9:38 AM
- Shareholders with Family Dollar (NYSE:FDO) have approved the merger offer from Dollar Tree (DLTR +1.8%) as expected.
- 74% of shareholders approved the merger of the discounters.
- FDO trades at $76.20 vs. the buyout price of $74.50.
- Shares of Dollar General (NYSE:DG) are taking the news well, up 2.4% in early trading.
Thu, Jan. 22, 2:18 AM
- Family Dollar (NYSE:FDO) shareholders are expected to vote today in favor of a pending $8.5B merger with Dollar Tree (NASDAQ:DLTR) despite a higher $9.1B offer from Dollar General (NYSE:DG) still on the table, Reuters reports.
- Family Dollar and two influential proxy firms are pushing for the deal with Dollar Tree, which said it would divest as many outlets as required to get antitrust approval.
- Dollar General has said it would only shed up to 1,500 stores.
- Previously: Proxy firms back Dollar Tree's bid for Family Dollar (Jan. 15 2015)
- Previously: Family Dollar sticks with Dollar Tree recommendation (Jan. 12 2015)
Thu, Jan. 15, 8:20 AM
- Dollar General (NYSE:DG) says discussions with the FTC over the company's offer to acquire Family Dollar (NYSE:FDO) are ongoing.
- The company has already has detailed talks with potential buyers for many of the Family Dollar stores which would need to be offloaded if a deal was struck.
- Still, the discounter faces an uphill battle in the attempt to swallow up its sector rival.
- Proxy firms Glass Lewis and ISS have both recommended that Family Dollar shareholders vote to merge with Dollar Tree (NASDAQ:DLTR).
- FDO closed at $76.30 yesterday vs. the DLTR offer price of $74.50 and DG bid of $80.
Thu, Jan. 15, 3:13 AM
- Changing their previous stance, two influential proxy firms, Institutional Shareholder Services and Glass Lewis & Co, have advised Family Dollar (NYSE:FDO) shareholders to vote for the retailer's acquisition by Dollar Tree (NASDAQ:DLTR), saying it was more likely to close as it faced fewer antitrust hurdles.
- Previously, Dollar Tree had said it would divest as many outlets as required to get antitrust approval for the deal, while Dollar General (NYSE:DG) stuck to its offer to shed up to 1,500 stores.
Mon, Jan. 12, 6:55 AM
- Family Dollar (NYSE:FDO) issues an open letter to shareholders in which it recommends they vote to approve a merger with Dollar Tree (NASDAQ:DLTR).
- The company says economic analysis by the FTC on the Dollar Tree combination leads to a count of problematic stores of 310, compared to estimated 3K-4K which would likely be needed to be divested under the Dollar General (NYSE:DG) merger proposal.
- A special meeting of Family Dollar shareholders is set for January 25 to vote on the DLTR offer.
- Full letter
Fri, Jan. 9, 8:35 AM
- The House passed a bill to redefine a full-time worker under the Affordable Care Act to 40 hours a week from 30 hours.
- The legislation could impact millions of workers as companies adjust hours and employee policies around the issue.
- The measure was passed by a vote total of 252-172.
- Senate Majority Leader Mitch McConnell has indicated the bill will see a vote in his chamber.
- The White House has threatened to veto the bill on its view it will reduce the number of workers covered by healthcare.
- Most industry groups within the restaurant and food industry have issued support for the legislation.
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Thu, Jan. 8, 8:18 PM
- Holiday retail sales rose 4.6% vs. expectations for a 3.8% lift, according to a read from ShopperTrak. The growth rate is the highest since 2005 for the period.
- The rush of positive reports from retailers on holiday sales comes off of some beaten-down expectations, notes Chain Store Age.
- Concerns on mall traffic, a West Coast port slowdown, and a frenzied level of promotions drove consensus estimates lower before some macroeconomic factors improved and $2 gas entered the scene.
- A cross-section of retailers that surprised on the upside includes Barnes & Noble, Pier 1 Imports, Walgreens, Urban Outfitters, and Sonic.
- What to watch: Costco (NASDAQ:COST) put up a 5% comp for December, putting some pressure on Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) to show signs of late-quarter strength. Signs of weakness at dollar stores (DG, DLTR, FDO, FIVE) and electronics chains (HGG, CONN, BBY) are a concern. Retailers seen as on-trend for the holiday season include Foot Locker (NYSE:FL), Lululemon (NASDAQ:LULU), and Williams-Sonoma (NYSE:WSM).
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Dec. 23, 2014, 10:31 AM
- The Family Dollar (FDO +0.2%) shareholder meeting has been adjourned to January 22, according to the Charlotte Observer.
- The delay was expected with the FTC yet to finalize its ruling on the amount of store closings it requires in a Dollar General (DG +1%) acquisition of Family Dollar.
- Recap: Dollar General is in with a $9.1B offer for FDO to top the $8.5B Dollar Tree (DLTR +0.9%) bid which is preferred by the target's board
Dec. 19, 2014, 9:57 AM
- Dollar General (DG -1.1%) announces it remains "actively engaged" with the FTC on the amount of store divestitures needed to see the regulator clear a Family Dollar (FDO -0.4%) acquisition.
- The company says its brief statement will be the last update on the issue prior to the scheduled Family Dollar shareholder meeting on December 23.
- What to watch: Dollar General is one of the retail names picked by some analysts to see a sales boost tied to lower gas prices in the U.S. The company is already running up against a soft storm-impacted comp from last winter.
Dec. 5, 2014, 9:44 AM
- Dollar General (NYSE:DG) responds to an update from Dollar Tree (NASDAQ:DLTR) on the chase for Family Dollar (NYSE:FDO) within hours.
- The company holds its position that prices at Wal-Mart are what determine its own pricing decisions.
- The working theory is that a DG-FDO combination wouldn't lead to widespread price increases for consumers.
- Good progress on talks with the FTC on store divestitures is reported by Dollar General.
- An update (higher offer?) to Family Dollar shareholders is also promised.
Dec. 5, 2014, 7:20 AM
- Dollar Tree (NASDAQ:DLTR) says it expects a deal to acquire Family Dollar (NYSE:FDO) will close by early February.
- The discounter thinks it will only have to divest a small number of stores.
- Talks with the FTC over the matter are still progressing.
- Dollar Tree couldn't resist taking a shot at Dollar General (NYSE:DG) over its chase of Family Dollar, noting the FTC is likely to ask for divestitures far in excess of the 1,500 stores offered up to DG.
- Family Dollar shareholders are schedule to vote on the Dollar Tree offer on December 23.
Dec. 4, 2014, 8:26 AM
- Dollar General (NYSE:DG) says it remains committed to its acquisition bid for Family Dollar (NYSE:FDO).
- The company plans to give an update on its offer before the Family Dollar shareholder meeting scheduled for December 23.
- Some retail analysts are taking that as an indication a higher offer is coming down the pike.
- Dollar Tree (NASDAQ:DLTR) will be dialed into the developments.
- Family Dollar closed yesterday at $79.48, just below the $80 Dollar General offer price.
Dec. 4, 2014, 7:18 AM
- Dollar General (NYSE:DG) reports same-store sales rose 2.8% in Q3 as both traffic and average transaction price improved over the period.
- The discounter continues to see sales on consumables outpace non-consumables sales, led by tobacco and candy products.
- Gross profit rate -18 bps to 30.1%.
- SG&A expense rate +40 bps to 21.8%.
- Inventory +7.7% to $2.79B.
- Guidance: Full-year revenue growth of +8% expected vs. 8.0%-9.0% prior outlook. Sames-store sales expected to grow below previous guidance of 3.0%-3.5%. EPS forecast to land in middle part of $3.45-$3.55 range vs. $3.50 consensus.
- DG +0.4% premarket.
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