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Retail

Dollar General Beats Quarterly Same-Store Sales Estimates

By Dayeeta Das
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Dollar General Beats Quarterly Same-Store Sales Estimates

Dollar General Corp beat analysts' estimates for quarterly same-store sales and profit on Thursday, as customers spent more on groceries, seasonal products and home goods at the discount retailer's stores, sending its shares up 6%.

The company has been lining store shelves with more private labels for health and beauty products among others, while also selling groceries and other items at lower prices in a bid to boost sales.

'Variety Of Initiatives'

The retailer has been also revamping its stores. In 2019, it would open 975 stores and remodel 1,000 outlets with upgrades, including self-checkout lanes for shoppers who can just scan products and pay through the store app on their phones, the company said.

"We have a wide variety of initiatives and projects that we believe can help extend our growth trajectory over both the near and longer term," chief executive officer Todd Vasos said in a statement.

Full-Year Forecast Unchanged

The company kept its full-year forecast unchanged, accounting for any anticipated impact of increased tariff rates on certain products imported from China. The outlook, however, did not factor in any additional increases in levies.

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The company reported a 3.8% rise in same-store sales, beating the average analyst estimate of a 2.88% increase, according to IBES data from Refinitiv.

Net income rose to $385 million (€345.7 million), or $1.48 per share, in the first quarter ended 3 May, from $364.9 million (€327.7 million), or $1.36 (€1.22) per share, a year earlier.

Analysts were expecting the company to earn $1.39 (€1.25) per share.

Net sales rose to $6.62 billion (€5.9 billion) from $6.11 billion (€5.5 billion), also beating expectations of $6.57 billion (€5.9 billion).

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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