Dollar General's stock surged 9.87% during Thursday's intraday trading session after the discount retailer reported better-than-expected third-quarter earnings and raised its annual profit forecast. The company posted earnings of $1.28 per share, significantly surpassing the consensus estimate of $0.95, while revenue edged past expectations at $10.65 billion.
The strong performance was driven by a 2.5% increase in same-store sales, fueled by higher customer traffic and stable transaction amounts. Dollar General also raised its fiscal 2025 EPS guidance to $6.30-$6.50, up from $5.80-$6.30, reflecting confidence in continued demand for its affordable essentials amid economic uncertainty.
The results highlight the resilience of discount retailers like Dollar General, which are benefiting from budget-conscious shoppers seeking value. The company's focus on cost-cutting and inventory management further boosted profitability, with gross margin expanding by 107 basis points to 29.9%.
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