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Author: ultrabrite Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1001  
Subject: Re: July SSS up 4.6% Date: 8/19/2006 2:05 AM
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As an update this evening DG announced that profits for the 2nd quarter ending August 4th will be lower than expected:

UPDATE 1-Dollar General cuts Q2 earnings view

Fri Aug 18, 2006 6:50pm ET

LOS ANGELES, Aug 18 (Reuters) - Dollar General Corp. (DG.N: Quote, Profile, Research) on Friday cut its second-quarter earnings outlook, saying the addition of new national brands crimped gross profit margins and back-to-school sales were lower than forecast.

Shares fell 6.5 percent after hours after the discount retailer said it now expects to earn 14 cents to 15 cents a share, down from its previous forecast of 18 cents to 22 cents a share.

Wall Street analysts, on average, had expected earnings per share of 19 cents, excluding items, according to Reuters Estimates...


http://tinyurl.com/ftjos

I had been thinking that profits in Q2 might continue to be weak. At this point I'm not sure what full year earnings will look like but I would hazard a guess that if oil prices stay at elevated levels, then DG will continue to have a rough time generating increases in profits.

JT
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