The company forecasts full-year adjusted earnings of between $1.62 to $1.69 a share, compared with the average Wall Street estimate of $1.63 a share. This updated guidance is up from the previously expected earnings of $1.55 to $1.63 a share. Still, Dollar General said the macroeconomic environment is volatile, with sustained rates of high unemployment, which pressures the consumer in general.
For the first quarter, Dollar General reported net income of $136 million, or 39 cents a share, compared with net income of $83 million, or 26 cents a share, the previous year. Excluding items totaling about $15 million relating to a secondary stock offering, adjusted net income increased 75% to $145.4 million, or 42 cents a share.
The company said that it experienced higher net markups during quarter, partially offset by increased markdowns. Higher markups were impacted by increased sales volumes and improved global sourcing capabilities which have contributed to the company's ability to reduce product costs, Dollar General said in a press release.
Sales increased 11.9% to $3.11 billion in the quarter, with same-store sales rising 6.7%.
Sales were strongest in the consumables and seasonal categories.
Analysts, on average, were expecting earnings of 34 cents on revenue of $3.03 billion.
-- Reported by Andrea Tse in New York
Follow TheStreet.com on
and become a fan on
Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.