Dollar General Corporation (NYSE: DG) shares jumped 11% intra-day on Thursday after the discount retailer reported third-quarter earnings that far exceeded analyst expectations and raised its full-year guidance, signaling improving performance in a challenging consumer environment.
The company posted adjusted earnings per share of $1.28, well above the analyst consensus of $0.94. Revenue totaled $10.6 billion, slightly below expectations of $10.62 billion, but up 4.6% compared with the same quarter a year earlier.
Same-store sales increased 2.5% year over year, driven by a 2.5% rise in customer traffic, while average ticket size remained unchanged. Dollar General reported growth across all major merchandise categories, including consumables, seasonal items, home products and apparel.
Operating profit surged 31.5% to $425.9 million from the prior-year period, supported by improved efficiency and cost controls. Gross profit margin expanded by 107 basis points to 29.9%, reflecting better merchandising and pricing discipline.
On the back of the strong results, the company lifted its full-year guidance. Dollar General said it now expected earnings per share of $6.30 to $6.50, exceeding the analyst consensus of $6.13. It also raised its net sales growth forecast to approximately 4.7% to 4.9%, up from a previous range of 4.3% to 4.8%.
