Dollar General’s quarterly comparable store sales beat Wall Street estimates as customers continue to spend more at its stores, and the discount retailer gave a full-year profit forecast that also topped expectations.
Shares of the company, which increased its stock repurchase program by $1 billion, rose 7.2 percent premarket on Thursday.
Dollar General’s 3.3 percent rise in same-store sales beat analysts average estimate of a 2.7-percent increase, according to Thomson Reuters I/B/E/S.
The company said it expects fiscal 2018 earnings of $5.95 to $6.15 per share. Analysts were expecting $5.60 per share.
Dollar General’s net income rose to $712.2 million in the latest quarter, from $414.2 million a year ago, benefiting from a $311 million gain due to changes in U.S. tax laws.
Excluding one-time items, the Goodlettsville, Tennessee based company earned $1.48 per share, in line with analysts’ estimates.
Net sales rose to $6.13 billion from $6 billion.