Executive Summary

• Dollar General reported 1Q18 EPS of $1.36, up from $1.02 in the year-ago period, but below the $1.40 consensus estimate. Revenues were $6.11 billion, up 9.0% year over year and below the $6.18 billion consensus estimate.
• Comps were up 2.1%, below the consensus estimate of 3.2%. The comp growth was due to an increase in average transaction value, which was partially offset by a decline in customer traffic.
• Dollar General reaffirmed its FY18 guidance of sales growth of 9%, implying revenues of $25.58 billion, ahead of the $25.47 billion consensus estimate. The company expects full-year comps of around 2.5%, slightly below the consensus estimate of 2.6%, and EPS of $5.95–$6.15, in line with the $6.08 consensus estimate.