Overview
- Dollar General posted Q3 revenue of $10.65 billion with same-store sales up 2.5% and earnings of $1.28 per share, topping estimates as gross margin expanded about 107 basis points.
- The company raised full-year guidance to earnings of $6.30 to $6.50 and comparable sales growth of roughly 2.5% to 2.7%, citing stronger traffic and improved shrink control.
- Management said business from higher-income households grew disproportionately, with customer traffic up 2.5% and average transaction size flat.
- One day earlier, Dollar Tree reported adjusted EPS of $1.21 on sales of $4.75 billion, same-store sales up 4.2%, gross margin up 40 basis points, and a guidance raise to $5.60 to $5.80.
- Dollar Tree said about 3 million more households shopped its stores in Q3 with roughly 60% earning over $100,000, while it repurchased $399 million of stock and accelerated multi-price store conversions.