Dollar General Q2 tops estimates; on track to open 900 stores
Dollar General reported second-quarter earnings and same-store sales that beat analysts’ expectations as more people shopped its stores.
The discounter also reiterated that it plans to open approximately 900 new stores in fiscal 2018. It will also remodel 1,000 locations and relocate 100 stores.
Dollar General’s net income rose 38% to $407 million, or $1.52 a share, in the quarter ended Aug. 3, up from $295 million, or $1.08 a share, in the year-ago period (at which time the retailer took a charge related to the acquisition of the Dollar Express stores.) Analysts were expecting earnings per share of $1.49.
Net sales rose 10.6% to $6.4 billion. The FactSet consensus was for EPS of $1.49 and sales of $6.4 billion. Same-store sales rose 3.7%, ahead of estimates, driven by increases in average transaction amount and customer traffic.
“Our results this quarter were driven by contributions from our mature store base, as well as the robust performance of our new stores,” said Todd Vasos, CEO, Dollar General. “In addition, we maintained our disciplined focus on cost control, which culminated in another quarter of significant earnings growth.”