Dollar General third quarter profits jumped on big comp gains.
In the quarter ended October 30, Dollar General posted net income of $574.3 million, or $2.31 per diluted share, versus $365.6 million, or $1.42 per diluted share, in the year-before period. Dollar General topped a MarketBeat-published third-quarter analyst consensus earnings per diluted share estimate of $1.99.
Net sales Increased 17.3% to $8.2 billion with comparable sales up 12.2% versus the year-previous quarter. Comps increased in each of Dollar General’s consumables, seasonal, home products and apparel categories, with the largest percentage advance in the home products category, the company reported.
Operating profit advanced 57.3% to $773.1 million in the period year over year.
Todd Vasos, Dollar General CEO, said that the company would “award a total of up to $75 million in appreciation bonuses to eligible frontline employees in Q4, which includes our recent announcement to double our initial plans for second-half bonuses by approximately $50 million, bringing the company’s full-year investment in employee appreciation bonuses to approximately $173 million. Despite continued significant uncertainty in the operating environment, our team members have been unwavering in their commitment to fulfilling our mission of serving others. As a result, we are pleased to report strong third quarter financial results.”
Vasos added, “During the quarter, we also continued to make great progress advancing our key strategic initiatives, including the rollout of DG Pickup across nearly our entire store base, and the launch of our newest store format, pOpshelf. In total, we executed 765 real estate projects, further laying and building the foundation for future growth. Overall, our ongoing operating priorities, coupled with our key strategic initiatives, position us well to continue delivering value and convenience for our customers, along with long-term sustainable growth and value for our shareholders.”