Dollar General 4Q12 Conference Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$DG 4Q12 Earnings Call

[on how Q1 is looking so far] “no doubt that there’s $18 billion worth of tax refund that are still working their way into the system. There’s, what is it, $180 billion in payroll tax adjustments that are out there. And Meredith, those don’t just affect Dollar General or the dollar channel, that affects all of retailing in general. We’re up against our stiffest quarter of the year last year in terms of sales comp. And my chief merchant was reminding me just this morning that last week (sic) [year] the temperatures in United States were about 70 degrees, and this year they’re about 38. So you had that significant weather factor we’re dealing with. We are incredibly confident that as we move through the year and our merchandising initiatives get put in place and we come up against softer comps, that we’re going to see our results begin to accelerate as we move through the year.”

“we added another [accounting] department for tobacco. And obviously, it’s going to be a low-margin department because tobacco is a low margin and then that’ll get into the consumable overall margin.”

“I think the competitive environment right now is reasonable. It’s competitive, but it’s not irrational.”

“I think the increase in debit really more reflects just the change in society, I think, and how they deal with cash. I don’t know necessarily if we’re attracting a different customer or our customers are moving up. I think it’s just a social change that’s taking place.”

“But when you’re in retailing, there’s nothing more than unit share growth, that is the most important thing. And our unit share growth continues to be in the high single digit.”

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