Dollar General raises sales guidance, shares climb 13%

• The retailer expects net sales to grow about 10% to 10.5% for the year

Shares of Dollar General Corp (NYSE: DG) soared more than 13% on Thursday as it raised sales guidance for the fiscal year after beating Wall Street expectations.

The retailer expects net sales to grow about 10% to 10.5% for the year compared with its prior expectations of about 10% while it raised its same-store sales forecast to approximately 3% to 3.5% compared with its previous expectation of 2.5%.

“We’re already starting to see our core customers start to shop more intentionally,” Dollar General CEO Todd Vasos said on a call with analysts. “And we’re starting to see that next tier of customers start to shop with us a little bit more as well.”  

In the first quarter, the company same-store sales declined 0.1% year-over-year, lower than 1.3% decline expected by analysts, according to FactSet.

Dollar General also plans to open 1,100 new locations this year, in addition to the over 18,000 stores it currently has.

The retailer will also expand globally by opening up to 10 stores in Mexico by the end of this year.

Picture Credits: Getty Images

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