Shares of discount retailer
were moving higher in Thursday premarket trading after the company posted a 12.5% increase in first-quarter profit, matching the consensus estimate of analysts.
The company earned $67.8 million, or 20 cents a share, in the period ended April 30, compared with $60.3 million, or 18 cents a share, in the year-earlier period. Total sales were $1.75 billion, up 11.4%, while same-store sales increased 3% in the quarter.
Recently, the stock was up $1.25, or 6.7%, at $20.
Dollar General said gross profit as a percent of sales expanded to 29.3% from 28.8% in the year-earlier period. The company cited higher average markup on beginning inventories.
The Goodlettsville, Tenn.-based company operates 6,930 stores. Dollar stores, in general, are among the fastest growing retailers.