Dollar General DG, -0.19% shares rose 1.4% before market open, boosted by strong second-quarter results and robust full-year guidance. The retailer reported sales of $9.4 billion, compared with $8.7 billion in the same period last year. The sales increase was primarily driven by positive contributions from new stores and growth in same-store sales, according to Dollar General, although this was partially offset by the impact of store closures. Analysts tracked by FactSet had forecast sales of $9.4 billion. Dollar General earned $2.98 a share on net income of $678 million, compared with earnings of $2.69 a share and net income of $637 million in the year-ago quarter. Analysts tracked by FactSet were looking for earnings of $2.94 a share. “We are pleased with our second quarter results, and I want to thank our associates for delivering another quarter of strong performance during a period of inflation and economic uncertainty,” said Todd Vasos, Dollar General’s chief executive officer, in a statement. “The quarter was highlighted by same-store sales growth of 4.6%, a slight increase in customer traffic, accelerated growth in market share of highly consumable product sales, and double-digit growth in EPS.” Dollar General also raised its full-year sales guidance. The company now sees full-year sales up about 11%, compared with its prior guidance of 10% to 10.5%. Dollar General now sees FY22 same-store sales up 4% to 4.5%, compared with its prior guidance 3% to 3.5%. The company still sees full-year EPS growth of 12% to 14%. The retailer’s shares have risen 4.9% this year, compared with the S&P 500 Index’s SPX, +0.88% decline of 13.1% over the same period.
