Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Dollar General Lifts Profit Forecast, Tops Q3 Expectations On Sales

Discount store operator Dollar General Corp raised its full-year profit forecast on Thursday after reporting its best quarterly same-store sales rise in nearly five years, benefiting from a wider selection of products and revamped stores.

Shares of the company rose about 5% in premarket trading as the retailer raised its adjusted profit for fiscal 2019 to the range of $6.55 to $6.65 per share from $6.45 to $6.60.

The retailer has been aggressively opening hundreds of new stores, creating private label and adding food, health and beauty products to its existing outlets as it tries to better compete with other retailers and grocers.

The efforts boosted same-store sales growth to 4.6% in the third quarter ended 1 November, above the average analyst estimate of 3.34% increase, according to IBES data from Refinitiv.

The company now expects full-year same-store sales to grow in the mid-to-high 3% range compared with the prior low-to-mid 3% range.

Upbeat Forecast

The upbeat forecast comes in contrast to rival Dollar Tree Inc, which cut its full-year profit forecast last month, as the discount retailer fell short in its efforts to counter the impact of latest US tariffs on Chinese imports.

Dollar General's net sales rose 8.9% to $6.99 billion (€6.30 billion) in the quarter, above the estimate of $6.92 billion (€6.24 billion).

Net income rose to $365.6 million (€329.45 million), or $1.42 per share, from $334.1 million (€301.06 million), or $1.26 per share, a year earlier.

Analysts on average had expected a profit of $1.38 per share.

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

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days