(Reuters) - Dollar General Corp beat analysts’ estimates for quarterly same-store sales and profit on Thursday, as customers spent more on groceries, seasonal products and home goods at the discount retailer’s stores, sending its shares up 6%.
The company has been lining store shelves with more private labels for health and beauty products among others, while also selling groceries and other items at lower prices in a bid to boost sales.
The retailer has been also revamping its stores. In 2019, it would open 975 stores and remodel 1,000 outlets with upgrades, including self-checkout lanes for shoppers who can just scan products and pay through the store app on their phones, the company said.
“We have a wide variety of initiatives and projects that we believe can help extend our growth trajectory over both the near and longer term,” Chief Executive Officer Todd Vasos said in a statement.
The company kept its full-year forecast unchanged, accounting for any anticipated impact of increased tariff rates on certain products imported from China. The outlook, however, did not factor in any additional increases in levies.
The company reported a 3.8% rise in same-store sales, beating the average analyst estimate of a 2.88% increase, according to IBES data from Refinitiv.
Net income rose to $385 million, or $1.48 per share, in the first quarter ended May 3, from $364.9 million, or $1.36 per share, a year earlier.
Analysts were expecting the company to earn $1.39 per share.
Net sales rose to $6.62 billion from $6.11 billion, also beating expectations of $6.57 billion.
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shinjini Ganguli