Dollar General Corp (DG) - Get Report posted much stronger-than-expected first quarter earnings Thursday as consumers flocked to essential and discount retailers amid the peak of the coronavirus pandemic.
Dollar General said diluted earnings for the three months ending on May 1 rose 73% from last year to $2.56 per share, smashing the Street consensus forecast of $1.74 per share. Group revenues, the company said, surged 27.55% to $8.448 billion, again topping analysts' forecasts of a $7.589 billion tally.
Looking into the 2020 financial year, Dollar General said it expects to exceed its previously-stated guidance for net sales, which were forecast to rise between 7.5% and 8%, but withdrew the detailed guidance it issued on March 12.
“In the midst of a very challenging operating environment, our team members have been tirelessly committed to fulfilling the Company’s mission of Serving Others, and we could not be more proud of how they have responded to the needs of our communities," said CEO Todd Vasos. "As a result of their efforts, we are very pleased to report strong first-quarter financial results.”
“Looking ahead, we remain committed to our operating priorities and strategic initiatives to drive continued growth and meaningful long-term value for shareholders," he added. "As one of America’s essential retailers, we believe our unique brick-and-mortar footprint positions us well to continue delivering value and convenience for our customers, particularly at a time when they need us most.”
Dollar General shares were marked 0.2% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $186.90 each.