- In the third quarter of the fiscal year, Dollar General’s net sales increased 17%.
The Variety Store chain reported a profit of £427.10 million in the third quarter.
Dollar General says that sales of the same stores increased 14% in the fourth quarter.
dollar General Corp. (NYSE: DG) said Thursday that its third-quarter profits and net sales in the fiscal quarter of its fiscal business were better than expected as sales in the same stores increased significantly.
USD General’s shares had dropped to as low as £102 per share at the end of March when the COVID 19 crisis temporarily closed its businesses. Currently, the stock is priced at £161.53 per share, representing 40% growth in the stock market so far this year – good news for value investors.
Dollar General’s financial results for Q3 compared to analysts’ estimates
Dollar General said its third quarter earnings were printed at 427.10 million pounds. In the same quarter last year he had made a much lower profit of £271.89 million. In the quarter ending October 30, the chain of variety stores earned £1.72 per share compared to £1.06 per share last year.
According to FactSet, Dollar General’s earnings in the last quarter were better than analysts had expected. The company released its quarterly financial report just weeks after Dollar Tree said its third quarter net income had risen to £247.63 million.
The U.S. company reported net sales of £6.10 billion in the third quarter, representing 17% year-on-year growth. The FactSet Consensus for Dollar General’s third quarter net sales was lower at £6.05 billion. The U.S. chain said last month that it had increased investments in front-line bonuses by 40%.
Other prominent figures in Dollar General’s earnings report
Other prominent figures in the Goodlettsville-based company’s Thursday earnings report include annualized growth of 12.2% in comparable store sales for the last quarter. From October 31 to December 1, Dollar General added that sales in the same stores increased 14% year over year.
According to Dollar General, customer traffic remained depressed in the third quarter due to the ongoing coronavirus pandemic, but the average transaction amount was higher, leading to an increase in sales in comparable stores:
“The Company believes that consumer behavior driven by COVID-19 had a significant positive effect on net sales and comparable store sales.
Dollar General’s stock market performance was largely positive last year, with an annual profit of approximately 45%. At the time of writing, it is estimated at £40.29 billion and has a price/earnings ratio of 23.63.