Dollar General Corporation (NYSE:DG) Q3 2018 Earnings Conference Call Transcript

Dec 04, 2018 • 10:00 am ET


Dollar General Corporation (NYSE:DG) Q3 2018 Earnings Conference Call Transcript


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Good morning. My name is Sia, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dollar General Third Quarter 2018 Earnings Call. Today is Tuesday, December 4, 2018. All lines have been placed on mute to prevent any background noise. This call is being recorded. Instructions for listening to the replay of the call are available in the Company's earnings press release issued this morning.

Now, I would now like to turn the conference over to Ms. Jennifer Beugelmans, VP of IR and PR. Ms. Beugelmans, you may begin your conference now.

Jennifer Beugelmans

Thank you, Sia, and good morning, everyone. On the call with me today are Todd Vasos, our CEO; and John Garratt, our CFO. After our prepared remarks, we will open up the call for questions. Our earnings release issued today can be found on our website at under News & Events.

(Forward-Looking Cautionary Statements)

At the end of our prepared remarks, we will open the call up for your questions. Please limit your questions to one and one follow-up question, if necessary.

Now, it is my pleasure to turn the call over to Todd.

Todd J. Vasos

Thank you, Jennifer, and welcome to everyone joining our call. We are very pleased with our third quarter results, particularly given the two major hurricanes that devastated communities in some of our most heavily penetrated the areas in the Southeastern United States. We stayed focus on our initiatives, kept the customers the center of everything we do, and our financial performance during the quarter demonstrated what this type of focus can produce.

Before discussing our third quarter results, I want to express my gratitude to all of our teams who have worked so diligently in very difficult circumstances to serve the communities we call home. We recently visited with our field teams in the Carolinas and the Florida Panhandle where the damage was the greatest. I say it frequently, but it bears repeating, I am so inspired by our team's consistent dedication to our mission of serving others.

Turning now to our third quarter performance. We delivered another solid quarter with strong growth on both the top and bottom lines. On the top line, our same store sales growth of 2.8% resulted in our highest two-year stack in 11 quarters. This quarter, our comp growth was primarily driven by our customers checking out with larger baskets. We believe this was a reflection of all the work we have done to make the box more relevant for our customers. As our customers' needs evolve, they are telling us they want a fuller shop from us and we're delivering with even more of the products they want at the values they need. Year-to-date through the 2018 third quarter, we posted 2.9% same-store sales growth, which continued to be driven by greater customer productivity. We feel good about our 39-week performance as well as the outlook for the rest of the year.

We did, however, incur greater