GOODLETTSVILLE, Tenn. (AP) — Dollar General Corp. said Tuesday that its fiscal third-quarter net income rose 21 percent, helped by strong demand for candy and snacks, and boosted its guidance for the full year.
But the retailer said that while its sales over the Thanksgiving weekend and the start of the holiday shopping season were encouraging, it remains cautious about the rest of the year, noting that consumer spending remains tight.
Its shares fell 4 percent in morning trading, dropping $1.89 to $44.68. Its shares have fallen 20 percent from a 52-week high of $56.04 in mid-July. They fell as low as $39.83 in mid-January.
For the quarter ended Nov. 2, Dollar General earned $207.7 million, or 62 cents per share, up from $171.2 million, or 50 cents per share, in the same quarter last year. Excluding one-time items, the company posted an adjusted profit of 63 cents per share.
Revenue rose 10 percent to $3.96 billion from $3.6 billion.
Analysts, on average, expected earnings of 60 cents per share on $3.96 billion in revenue, according to a FactSet poll.
The Goodlettsville, Tenn.-based company said its revenue at stores open at least a year increased 4 percent, helped by both increases in customer traffic and the average amount spent by each shopper. The metric is a key measure of a retailer's health, because it excludes revenue at stores that recently opened or closed.