Dollar General proved the present strength of discount retailers amid the coronavirus pandemic when it reported earnings ahead of Thursday’s opening bell.
The retailer reported diluted earnings per share of $2.56, far exceeding estimates of $1.74 and raising 73% from the prior year. Revenue also beat forecasts, gaining 27.55% to $8.448 billion.
Same-store sales also rose 21.7% as consumers flocked to discounters for essentials.
“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," CEO Todd Vasos said in the earnings release.
During the quarter, Dollar General also awarded around $60 million in “appreciation bonuses” to frontline workers, donated $250,000 to its employee assistance foundation and provided gloves, masks and hand sanitizer to its employees among other measures.
While it withdrew its 2020 guidance, Dollar General said it anticipates “elevated demand” going forward.
"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,” Vasos said.
Following earnings, Jim Cramer says Dollar General is a stock you'll want to own. Catch why in the video above.