US value retailer Dollar General has raised its full-year profit targets after growth from the company’s bottom line accelerated during the company’s third quarter.
Dollar General yesterday (6 December) posted a 69% leap in adjusted net income to US$128m for the third quarter to 29 October. Over the first nine months of Dollar General’s financial year, net income was up 61% at $405m.
Third-quarter operating profit increased by 26.9% to $274m. The first nine months of the fiscal year saw Dollar General’s operating profit rise 28.4% to $865.8m.
Third-quarter net sales rose 10.1% to $3.22bn. Same-store sales were up 4.2%. After the first nine months of the year, net sales had climbed 10.9% on the back of a 5.3% increase in same-store sales.
Despite the slowdown in sales growth during the third quarter, Dollar General still upped its prediction for full-year net sales, which it now sees rising by 10.5-11%. The previous forecast was for net sales to climb by 8.5-10.5%.
The retailer narrowed its forecast for same-store sales, which it had put at 4-6% but now sees rising by 5-5.5%.
The increase in third-quarter net income also prompted Dollar General to up its full-year earnings forecast.
The retailer expects adjusted diluted earnings per share to reach $1.78-1.81 over its fiscal year, up from $1.68-1.74.
Dollar General has also predicted that adjusted operating profit will rise by 23-25%, up from an earlier forecast of 20-23%.
“Dollar General is having a great year. We are executing our plans and delivering excellent performance for our shareholders. Even as the macroeconomic environment continues to be volatile for our customers, our strong results are top-tier among retailers,” said Dollar General chairman and CEO Rick Dreiling.
Click here for the full statement from Dollar General.