Dollar General在取消全年指引后上涨; Dollar Tree和Five Below也上涨

Dollar General Corporation (NYSE:DG) jumped in early trading on Thursday after topping Q2 estimates and setting favorable full-year guidance.

Sales increased 5.1% year-over-year during the quarter that ended on August 3 to $10.7 billion. The Chesapeake, Virginia-based company noted that the net sales increase was driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures.

Same-store sales increased 2.8% during the quarter to top the consensus expectation for a rise of 2.5%. The same-store sales growth reflected a 1.5% increase in customer traffic and a 1.2% increase in average transaction amount. Same-store sales in the quarter included growth in each of the consumables, seasonal, home products, and apparel categories

Gross profit as a percentage rose 130 basis points to 31.3% of sales. The gross profit rate improvement was driven primarily by lower shrink, higher inventory markups, and lower inventory damages; partially offset by an increased LIFO provision, increased markdowns, and increased distribution costs. Operating profit rose 8.3% from a year ago. EPS was reported at $1.86 vs. $1.57 consensus and $1.70 a year ago.

At the end of the quarter, total merchandise inventories, at cost, were $6.6 billion compared to $7.0 billion a year ago, a decrease of 7.4% on an average per-store basis.

"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," highlighted CEO Todd Vasos.

The retailer sees full-year comparable sales growth of +2.1% to +2.6% vs. a prior outlook for +1.5% to +2.5%. EPS of $5.80 to $6.30 is anticipated for the full year (midpoint $6.05) vs. $5.78 consensus and a prior outlook for $5.20 to $5.80.

Shares of Dollar General (NYSE:DG) rallied 7.2% in premarket trading. Dollar Tree (DLTR) was up 1.0%, and Five Below (FIVE) pushed 4.7% higher in the early session.