Dollar General’s share in pre-conference trading strengthened by 11.4%, as the consumer and household goods company announced earnings and first-quarter sales that exceeded estimates.
Net income for the quarter ended April 30 was down $ 552.7 million, or $ 2.41 a share, from $ 677.7 million, or $ 2.82 a year, a year earlier.
Convergent estimates spoke of $ 2.32 per share. Sales rose 4.2% to $ 8.75 billion, compared with estimates for $ 8.71 billion.
The cost of sales growth outpaced sales growth, rising 6.5% to $ 6.02 as the gross margin shrank 31.3% from 32.4%.
For the year 2022, the company maintained its estimates for the increase in earnings per share by 12% -14%, but increased the estimates for the increase of comparable sales to 3% -3.5% from 2.5%, and stated that he expects the sales increase to reach 10% -10.5%.
The company expects to repurchase $ 2.75 billion worth of shares in 2022.
Source: Capital
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