June 1 Dollar General Corp's profit and
sales beat analysts' estimates, as the Dollar-store chain
operator benefited from higher consumer spending at its stores
and lower advertising costs.
The company's shares were up 4.2 percent in light premarket
trading on Thursday.
Sales at stores open more than a year rose 0.7 percent,
slightly above the 0.6 percent growth expected by analysts
polled by research firm Consensus Metrix.
Larger rival Dollar Tree Inc had last week reported
lower-than-expected quarterly comparable sales, as late tax
refunds led low-income customers to rein in spending at its
Family Dollar stores.
Dollar General's expenses rose 8.2 percent in the first
quarter ended May 5 on higher wages and training for store
managers. However, the company said it cut back on spending on
The company's net income fell to $279.5 million, or $1.02
per share, in the quarter, from $295.1 million, or $1.03 per
share, a year earlier.
The company said it took a charge of 1 cent per share on
early retirement of long-term debt.
Excluding items, the company earned $1.03 per share, beating
the average analysts' estimate of $1 per share, according to
Thomson Reuters I/B/E/S.
Net sales rose 6.5 percent to $5.61 billion. Analysts on
average had expected revenue of $5.59 billion.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Maju
Samuel and Arun Koyyur)