Dollar General 4Q14 Earnings Call Notes

West coast ports will take months to clear

“As we mentioned, we’re closely monitoring the residual effect of the West Coast port slowdown and the impact on our seasonal merchandise receipts. The good news is that a tentative agreement has been reached, but it will take months to clear the backlog. Right now, based on the current status of shipments and the uncertainties surrounding the situation, we anticipate a possible drag to earnings of about $0.01 to $0.02 per diluted share in the first quarter and we’ll continue to monitor the impact to the timing of receipts and any potential sales and markdown risks as we work through the backlog.”

Could have 13k locations

“We still see over 13,000 opportunities for Dollar Stores in the continental United States. As we committed, we’re going to accelerate our store growth in 2016.”

CFO retiring

“Just briefly, obviously, retirement is a personal decision. I’m at the age where most people start to think seriously about it. This gives me a rare opportunity to spend lots of valuable time with my two teenage sons as they finish their last years of high school, and now I’ll be able to make all of their events, which is something most fathers don’t get to do.”

7500 sqft box is our sweet spot

right now, the best format we have when you mentioned competitors like Aldi, is our 7,500 square foot box. Yeah, there’s some – Aldi has some more consumables in it. But, you’ve got to remember, we’re a convenient shop. We’re not a destination shop. And I think that 7,500 box, when you look at that producing $223 a foot, you look at where it has come from, we believe that is the best piece we’ve got.”

No plans to raise wages

‘ we’re going to continue to monitor the landscape and we’ll assess or make any adjustments that we need to make. But, right now, in terms of what we’re paying our people, we feel pretty comfortable that we’re there.’