Latest news with #newStores
Daily Mail
14 hours ago
- Business
- Daily Mail
Lowe's rival opening 90 stores by the end of this year
Tractor Supply Company is coming for Lowe's with a whopping new store count. The nation's largest rural lifestyle retailer is set to open 90 new locations by the end of the year. With these 90 stores, the number of Tractor Supply locations will rise to about 3,200 across 49 states. At least 18 of these new locations were former Big Lots stores, which the retailer bought during a last minute rescue deal after Big Lots filed for bankruptcy last year. A spokesperson told USA Today that those locations are strategically positioned in areas to serve the needs of farmers, animal owners, ranchers, gardeners, homeowners, and tradesmen. The openings also occurred just in time for Tractor Supply to launch its new Field & Stream-branded hunting and outdoor gear. The chain is also planning to open 10 new Petsense by Tractor Supply stores, crossing the 200 unit mark. As of now, the retailer has already opened 15 new stores in Arizona, California, Florida, Georgia, Louisiana, Michigan, North Carolina, Ohio, and West Virginia. The openings are part of Tractor Supply's 'Life Out Here' strategy, created to help with its growth. 'Over the last five years, we have delivered strong financial performance and enhanced our competitive advantages through the execution of our Life Out Here strategy,' said CEO Hal Lawton. 'Our Life Out Here 2030 strategy continues the momentum of our existing initiatives as well as launches new initiatives such as Pet Rx and Direct Sales.' Tractor Supply initiated the original plan in 2020, which featured a new store layout and remodeling program in half of its stores. It helped the chain land 22 million Neighbor's Club loyalty program members, open 13 distribution facilities, and increase sales by more than 300 percent. With its updates, the chain is now aiming to finish the year with $225 billion in revenue instead of its original $180 billion expectation. The chain started its goal off on a high note after delivering a 2.1 percent increase in first quarter scales amounting to $3.47 billion. The company said that new store openings and the contribution from Allivet pet pharmacy helped make its quarterly goal a reality. Some new locations are strategically positioned in areas to serve the needs of farmers, animal owners, ranchers, gardeners, homeowners, and tradesmen Tractor Supply backtracked on its DEI initiatives following 'disappointment' from its conservative customer base in 2024. Fans have been concerned over the future of home improvement stores long before fears of a looming recession. Home Depot and Lowe's both suffered significant sales drops last year amid high inflation. Home Depot bounced back with a 9.4 percent revenue during the first quarter of 2025 and confirmed there would be no major price changes this year from tariffs. Lowe's was not as lucky with a 1.7 percent revenue decrease, but it did earn the top spot in customer satisfaction among home improvement retailers by J.D. Power. As for Tractor Supply, the chain's abundance of baby chicks has given shoppers a solution on what to do during the egg shortage.
Yahoo
04-06-2025
- Business
- Yahoo
Dollar General Corp (DG) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amid Challenges
Net Sales: Increased 5.3% to $10.4 billion in Q1. New Store Openings: 156 new stores opened during the quarter. Same-Store Sales: Increased 2.4% during the quarter. Gross Profit Margin: 31%, an increase of 78 basis points. Operating Profit: Increased 5.5% to $576 million. EPS: Increased 7.9% to $1.78. Cash Flow from Operations: $847 million, an increase of 27.6%. Merchandise Inventories: $6.6 billion, a decrease of 5% compared to prior year. Dividend Payment: $0.59 per common share, totaling $130 million. 2025 Financial Guidance: Net sales growth of 3.7% to 4.7%, same-store sales growth of 1.5% to 2.5%, EPS range of $5.20 to $5.80. Warning! GuruFocus has detected 7 Warning Sign with DG. Release Date: June 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dollar General Corp (NYSE:DG) reported a 5.3% increase in net sales to $10.4 billion in Q1 2025, driven by the opening of 156 new stores. Same-store sales increased by 2.4%, with growth in both consumable and non-consumable product categories. The company achieved a gross profit margin increase of 78 basis points, attributed to lower shrink and higher inventory markups. Dollar General Corp (NYSE:DG) saw a 7.9% increase in EPS to $1.78, exceeding internal expectations. The company reported strong cash flow from operations, increasing by 27.6% to $847 million, and reduced merchandise inventories by 5%. Customer traffic slightly decreased by 0.3% during the quarter, despite strong sales growth. SG&A expenses increased by 77 basis points as a percentage of sales, driven by higher retail labor and incentive compensation costs. The company faces uncertainty due to the evolving tariff environment, which could impact consumer spending and cost of goods. Dollar General Corp (NYSE:DG) anticipates a significant headwind from incentive compensation expenses, particularly impacting Q2. The cost to build new stores has risen by more than 40% since 2019, impacting the company's return on investment for new store openings. Q: Can you discuss your confidence in sustaining top-line momentum and any surprises during the quarter? Also, how does the full-year guidance reflect your expectations? A: Todd Vasos, CEO, highlighted confidence in sustaining top-line momentum due to improvements in store standards, customer service, and reduced turnover. He noted that shrink mitigation and supply chain improvements have contributed positively. Kelly Dilts, CFO, added that the guidance considers Q1 outperformance but also accounts for uncertainty, allowing for potential consumer spending pressure. Q: How do you see traffic progressing through the year, and have there been any changes in consumer behavior? A: Todd Vasos, CEO, mentioned that traffic turned positive in May, and they are optimistic about continued comp momentum. He noted that trade-in activity from higher-income customers remains strong, and initiatives like Project Elevate and Renovate are expected to drive further growth. Q: Are there plans for further investments in price or wage rates to sustain comp momentum? A: Todd Vasos, CEO, stated that they are comfortable with current investments in labor and wage rates, which have improved store conditions and employee satisfaction. He emphasized that they feel well-positioned on everyday pricing and continue to invest in maintaining a $1 price point for many items. Q: How important is achieving a 3% comp for margin expansion, and can shrink benefits improve further? A: Todd Vasos, CEO, indicated that sustained comps over 2% are crucial for margin expansion, with a focus on non-consumable categories. Kelly Dilts, CFO, noted that shrink benefits exceeded expectations in Q1 and are expected to continue throughout the year, contributing positively to margins. Q: How is Dollar General addressing competition and potential price investments? A: Todd Vasos, CEO, mentioned that the competitive landscape is stable, and they feel well-positioned on pricing. He emphasized their ability to respond to competitive pressures if needed, supported by strong relationships with CPG partners. He also discussed focusing on new communities to reduce cannibalization and drive growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
