US discounter Dollar General has raised its full-year earnings guidance on the back of an increase in third-quarter profits.
The company reported a 33.6% increase in net income for the three months ended 28 October, reaching US$171m. Operating profit jumped 13% to $311m.
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Net sales reached $3.6bn, up 11.5% on the same period last year. Same-store sales jumped 6.3% with increases in “consumer traffic and average transaction amount contributing to the growth in both periods”, the company said.
Consumables sales increased at a higher rate than non-consumables in the quarter, with the most significant growth in candy and snacks, perishables, packaged foods, health care and pet supplies.
“Dollar General delivered another great quarter, and we expect to continue to build upon our strong track record of delivering excellent results for our shareholders,” Dollar General chairman and CEO Rick Dreiling said yesterday (5 December).
“Our same-store sales increased 6.3% in the third quarter, representing our third consecutive quarter of accelerating same-store sales growth and demonstrating our ability to balance the challenges of pricing and rising input costs. Based on these results, we are raising our full year adjusted earnings per share guidance to the range of $2.29 to $2.32.”
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By GlobalDataThe company previously raised its EPS guidance after posting its half-year results in August to between $2.22 and $2.30.
For the nine months ended 28 October, Dollar General posted net income of $474m, up from $405m the same period last year. Net sales increased 11.2% to $10.62bn, including an increase in same-store sales of 5.9%.
“For the holiday season and into 2012, we expect our customers to remain very interested in value and in ways to make their dollars go further. November sales were strong. Our Thanksgiving week and Black Friday sales suggest that we are well positioned to meet our customers’ expectations,” Dreiling added.
