Dollar General Outperforms Expectations in Q3.
December 08, 2023: Dollar General Corporation (NYSE: DG) defied analyst expectations today, exceeding earnings and revenue estimates for the third quarter of fiscal year 2023. The discount retailer reported earnings per share of $1.26, exceeding the consensus estimate by $0.06. Revenue for the quarter came in at $9.7 billion, surpassing the analyst consensus of $9.65 billion.
Despite a decline in same-store sales of 1.3%, Dollar General’s top line benefitted from new store openings and positive contributions from consumable categories. Sales in the consumables category, which accounts for a significant portion of the company’s revenue, grew by 3.6% year-over-year.
The company also guided for fiscal year 2024, projecting earnings per share of $7.10 to $7.60, above the analyst consensus of $7.45.
“We are pleased with our third-quarter results, which demonstrate the resilience of our business model,” said Todd Vasos, Dollar General CEO. “We continue to see strong customer traffic and believe we are well-positioned to navigate the current inflationary environment.”
Investors reacted positively to the news, with Dollar General’s stock price rising 5% in pre-market trading. This positive outlook suggests that Dollar General remains a resilient player in the retail landscape despite the current economic challenges.
Key takeaways:
- Dollar General beat earnings and revenue estimates for the third quarter.
- Same-store sales declined by 1.3%.
- The company provided upbeat guidance for fiscal year 2024.
- Dollar General’s stock price rose on the news.
