For its third quarter, Dollar General earnings beat a Wall Street estimate and the company posted its best comparable sales in nearly five years.
Net income for the third quarter came in at $365.6 million, or $1.42 per diluted share, versus $334.1 million, or $1.26 per diluted share, in the year-earlier period. Diluted earnings per share for the 2018 third quarter included a five cent net negative impact from disaster-related expenses, Dollar General said.
The retailer topped a MarketBest-published analyst consensus diluted earnings per share estimate of $1.38.
Comparable sales gained 4.6%, while net sales increased 8.9% to $6.99 billion versus the quarter a year prior. Operating profit advanced 11.1% to $491.4 million in the period year over year.
The comparable sales gain consisted of increases in both average transaction amount and customer traffic, Dollar General noted, with consumables, seasonal, home and apparel segments generating the strongest comps among product segments.
“We are pleased with another quarter of strong performance across the business,” said Todd Vasos, Dollar General CEO. “The quarter was highlighted by our best customer traffic and same-store sales increases in nearly five years, as well as double-digit growth in both operating profit and diluted EPS. We continue to execute well on many fronts, while maintaining our focus on delivering value and convenience for our customers. As a result of our performance through the first three quarters of 2019 and outlook for the fourth quarter, we are raising our full-year financial guidance as we work to finish a strong year.”