Despite a surge in net income and sales gains, Dollar General fell short of Wall Street estimates in the first quarter, with the weather playing a factor in results.
In the first quarter ended May 4, Dollar General recorded net income of $364.9 million, or $1.36 per diluted share, versus $279.5 million, or $1.02 per diluted share, in the previous first quarter.
Dollar General fell short of a MarketBeat-published analyst consensus estimate of $1.40 per diluted share.
Comparable sales gained 2.1% in the quarter year over year, with an advance in average transaction amount partially offset by a decline in customer traffic. Consumables drove comp growth partially offset by sales declines in the apparel, seasonal and home categories.
Net sales were $6.11 billion versus $5.61 billion, in the previous first quarter. Operating profit was $490.2 million as compared to $473.8 million in the prior first quarter.
“Our team delivered strong net sales growth, a solid same-store sales increase, and gross margin expansion, while continuing to execute our cost containment strategy,” said Todd Vasos, Dollar General CEO. “We are proud of our execution and solid performance, particularly given the significant weather-related headwind we faced during the first quarter. We are pleased with the start of the second quarter, and, based on our year-to-date performance and outlook for the remainder of 2018, we are reiterating our full-year guidance.”