Dollar General forecasts full-year net sales above estimates

[March 17, 2022]    (Reuters) -Dollar General Corp forecast full-year sales above analysts' estimates on Thursday, as higher prices of everyday essentials make more Americans frugal and turn to discount stores for their groceries and household supplies.

People exit a Dollar General store in Mount Rainier, Maryland, U.S., June 1, 2021. REUTERS/Erin Scott

U.S. discount stores have seen store traffic remain steady as people gradually resume their pre-pandemic life after an Omicron-led pause and go back to buying more discounted apparel, moisturizers, lipstick and accessories.

The pandemic-led trend of cooking at home has also sustained even as coronavirus-related curbs have eased due to people reining in their spending at restaurants, helping grocery sales at discount stores that benefited during the lockdowns.

The discount store operator forecast full-year net sales to increase about 10%, while analysts on average expect growth of 7.5%, according to IBES data from Refinitiv.

The company's net income for the quarter ended Jan. 28 fell to $597.4 million, or $2.57 per share, from $642.74 million, or $2.62 per share, a year earlier.

(Reporting by Ananya Mariam Rajesh and Praveen Paramasivam in Bengaluru; Editing by Maju Samuel)

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