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VOL. 36 | NO. 35 | Friday, August 31, 2012
Dollar General 2Q net income soars; raises outlook
NEW YORK (AP) - Discount retailer Dollar General Corp. said Wednesday that its second-quarter earnings jumped 47 percent on a 10 percent increase in revenue and it raised its financial forecast for the year.
The company, which has more than 10,200 stores in 40 states, said the quarter's growth was driven by sales of candy, snacks and perishable foods. Sales were also driven by home and seasonal categories, the company said.
Its shares rose 85 cents, or 1.6 percent, to $51.51 in morning trading. Its shares are down 8 percent from their 52-week high of $56.09 in mid-July.
Dollar General, which is based in Goodlettsville, earned $214.1 million, or 64 cents per share, for the three months ended Aug. 3 compared with $146 million, or 42 cents per share, a year earlier.
It said its adjusted earnings came to 69 cents per share. That was 5 cents per share higher than the 64 cents per share that analysts surveyed by FactSet had expected.
Revenue rose 10 percent to $3.95 billion from $3.58 billion a year ago. Analysts expected revenue of $3.96 billion.
Revenue at stores open at least a year - a key measure of retailer health because it excludes the boost from new stores - rose 5.1 percent.
For the year, Dollar General now expects to earn an adjusted profit of between $2.77 and $2.85 per share, including a tax settlement of 4 cents per share. Its previous forecast was $2.68 to $2.78 per share. Analysts expected adjusted earnings of $2.81 per share.
It now expects sales for the full-year will rise between 4 and 5 percent, narrowed from a previous expectation of 3 to 5 percent growth. The new expectation implies revenue of $15.4 billion to $15.5 billion. Analysts expect $16.1 billion.