Helped by a strong kickoff to the holiday shopping season and rising same store sales, Dollar General (DG) reported Monday a stronger-then-expected record 68.4% increase in third-quarter earnings, leading the company to raise its full-year view.
The discount-store chain posted net income of $128 million, or 37 cents a share, compared with $76 million, or 24 cents a share, in the same quarter last year.
Excluding one-time charges related to early repayment of certain long-term obligations, Dollar General earned 39 cents a share, ahead of average analyst estimates polled by Thomson Reuters of 35 cents.
Revenue for the Goodlettsville, Tenn-based company was $3.22 billion, up 10.1% from $2.93 billion a year ago, virtually flat with the Street’s view of $3.23.
“Dollar General is having a great year,” the company's CEO Rick Dreiling said in a statement. “Even as the macroeconomic environment continues to be volatile for our customers, our strong results are top-tier among retailers.”
Earnings were helped by a 4.2% increase in same store sales, building on a 9.2% gain in the year-earlier period.
As a reflection of the improved results, Dollar General raised its full-year earnings guidance to the range of $1.78 to $1.81 a share, with revenue up 10.5% to 11%.