Dollar General (DG), a US discount store chain, reported earnings and sales for its fiscal second quarter that exceeded the estimates of Wall Street analysts as shoppers made more trips to its outlets and spent more per transaction.
Net income totaled $295 million, or $1.08 a share, in the quarter ended Aug. 4, compared with $307 million, or $1.08 a share, in the year-earlier period, the Goodlettsville, Tennessee-based retailer, said on Thursday. The earnings per share figure for the quarter included a $0.02 charge for the lease termination costs related to acquired stores. The adjusted earnings per share figure of $1.10, which excludes the charge, compares with an average analyst forecast of $1.09.
Revenue rose 8.1% to $5.83 billion in the quarter, higher than analysts’ estimate of $5.8 billion.
Same-store sales rose 2.6%, “driven by an increase in our average transaction amount and, importantly, positive customer traffic,” said Chief Executive Officer Todd Vasos. Dollar General said same-store sales were driven by positive results in consumables and seasonals, but partially offset by negative results in home products and apparel categories.
“In a dynamic retail and consumer landscape, we continue to make targeted investments in our business,” Vasos said.
Dollar General raised its full-year GAAP earnings per share estimate guidance to a range of $4.35 to $4.50 from a previous forecast of $4.25 to $4.50.
The company continues to forecast fiscal 2017 same-store sales growth of slightly positive to an increase of 2% and now expects results toward the upper end of the range. It expects full-year net sales to rise about 5% to 7%.