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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 Nov. 1, 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.
The upbeat forecast comes in contrast to rival Dollar Tree Inc <DLTR.O>,
which cut its full-year profit forecast last month, as the
discount retailer fell short in its efforts to counter the
impact of latest U.S. tariffs on Chinese imports.
Dollar General's net sales rose 8.9% to $6.99 billion in the
quarter, above the estimate of $6.92 billion.
Net income rose to $365.6 million, or $1.42 per share, from
$334.1 million, or $1.26 per share, a year earlier.
Analysts on average had expected a profit of $1.38 per share.
(Reporting by Soundarya J in Bengaluru; Editing by Arun Koyyur
and Shinjini Ganguli)
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