Dollar General (NYSE:DG) shares surged in premarket trading Thursday after the discount retailer reported second-quarter earnings that beat Wall Street estimates and raised its full-year guidance. The stock was up nearly 9% at 06:59 ET.
For the quarter, the company posted earnings per share of $1.86, well ahead of the $1.57 consensus estimate. Revenue came in at $10.73 billion, slightly above forecasts of $10.68 billion. Comparable-store sales advanced 2.8%, while operating income climbed 8.3% year-over-year to $595.4 million.
“We are pleased with our strong second-quarter results, including earnings growth that significantly exceeded our expectations,” said Todd Vasos, CEO of Dollar General. “Looking ahead, we believe we have ample opportunity to drive growth and further improve our operating and financial performance, as we continue to work toward achieving the goals laid out in our long-term financial framework.”
On the back of the solid quarter, the retailer lifted its fiscal 2025 outlook. It now expects EPS in the range of $5.80 to $6.30, compared with prior guidance of $5.20 to $5.80 and above analysts’ consensus of $5.75.
Dollar General also upgraded its sales forecasts, projecting net sales growth of 4.3%–4.8% (up from 3.7%–4.7%) and same-store sales growth of 2.1%–2.6% (previously 1.5%–2.5%).
Capital spending guidance remains unchanged at $1.3 billion to $1.4 billion, with continued investments earmarked for strategic growth initiatives.
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