For the second quarter, Dollar General Corporation (NYSE: DG) said its adjusted earnings rose to $1.74 per share compared to $1.52 per share in the year-over period, fuelled by more disciplined cost control measures as well as category management. The bottom-line was 17 cents higher than the Wall Street projection.
The adjusted earnings included certain legal expenses and after-tax impact.
Dollar General and its peer Dollar Tree (NASDAQ: DLTR) were slapped with fines amounting to $1.2 million on Monday for selling expired products. Both chains allegedly sold over-the-counter drugs that were expired, while Dollar General was penalized for selling obsolete motor oil that was not suitable for modern cars.
Net sales for the second quarter rose 8.4% to $6.98 billion, vs $6.89 billion expected by the street. The top line was boosted by a 4% growth in same-store sales and positive sales contributions from new stores.
Except in the apparel category, same-store sales grew in all other units.
Dollar General has been investing in expanding and remodeling its stores, improving its assortment, as well as in other business growth initiatives.
DG shares rose 6.5% during pre-market trading on Thursday. Dollar General’s shares have gained 29% year-to-date.
For the fiscal year 2019, Dollar General now expects net sales growth of approx 8%, compared to its previous expectation of 7%. Growth in same-store sales is currently projected to be in the low-to-mid 3% range, compared to its previous expectation of about 2.5%.
Due to the legal expenses, adjusted EPS for this period is forecast to be $6.45 to $6.60.
Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for
Warehouse behemoth Costco Wholesale Corporation (NASDAQ: COST) has reported a 15% increase in fourth-quarter 2022 revenues, which translated into double-digit growth in net income. Fourth-quarter revenues increased sharply to $72.09 billion.
Cargo giant FedEx Corporation (NYSE: FDX) Thursday reported a decline in first-quarter adjusted earnings, despite an increase in revenues. The company also provided guidance for fiscal 2023. Net income, adjusted