Dollar General Profit and Sales Fall

Dollar General Corp. DG,
+0.85%
the stock fell 2.9% in pre-market trading on Thursday after the discount retailer reported its second quarter was better than the street but fell from 2020. Net income was $637.0 million, or $2.69 per share. down from $787.6 million, or $3.12 per share last year. Revenue of $8.65 billion was down from $8.68 billion in 2020. The FactSet consensus was for EPS of $2.62 and revenue of $8.61 billion. Same-store sales fell 4.7% above the FactSet consensus for a 5% decline. For the year, Dollar General expects net sales growth of 0.5% to 1.5%, up from previous expectations for a spread of 1% to 1% growth. Same-store sales are expected to fall 3.5% to 2.5% compared to previous expectations of a 3% to 5% decline. And the outlook for Dollar General’s earnings per share is for a range of $9.60 to $10.20, narrowed from a range of $9.50 to $10.20. FactSet’s consensus is for revenue of $34.10 billion, indicating 1% growth, a 3.2% decline in same-store sales and earnings per share of $10.19. Dollar General shares are up 11.6% so far, while the S&P 500 index SPX,
+0.22%
is up 19.7% for the period.

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