NEW YORK ( TheStreet) -- Dollar General ( DG) forecasts its next fiscal year earnings ahead of Wall Street consensus estimates after posting a sales and earnings increase in the fourth quarter.
Dollar General expects earnings of about $1.55 to $1.63 a share for the fiscal-year ending in January 2011, with sales to increase 8% to 10%. Analysts surveyed by Thomson Reuters on average expect earnings of $1.56 a share. Dollar General said Wednesday it plans on opening about 600 new stores and remodeling or relocating about 500 stores the next fiscal year. For the fourth quarter, Dollar General's net income increased 121% to $172.9 million, or 51 cents a share excluding one-off charges, compared with the consensus estimate of 43 cents a share. Including the charges, fourth-quarter net income was $87.2 million, 26 cents a share, compared with net income of $81.9 million, or 26 cents a share, the same period last year. Fourth-quarter sales increased 11.9% to $3.19 billion, as same-store sales increased 7.4%. Shares of Dollar General are down 2.2% to $25.22 in Wednesday morning trading. -- Reported by Andrea Tse in New York Follow TheStreet.com on Twitter and become a fan on Facebook.