Dollar General's Sales Miss Estimates

Industries Reuters

Discount retailer Dollar General reported lower-than-expected quarterly sales, hurt by lower food prices, growing competition and as its low-income customer base was hurt by several states reducing food stamp coverage.

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The company's net income rose to $306.52 million, or $1.08 per share, in the second quarter ended July 29, from $282.35 million, or 95 cents per share, a year earlier.

Net sales rose 5.8 percent to $5.39 billion, but missed the average analyst estimate of $5.5 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Don Sebastian)