Dollar General Corp on Thursday reported first-quarter same-store sales below analysts' forecasts, as the discount store chain faced weaker demand for apparel and home products because of cold weather.
Same-store sales rose 2.1 percent in the three months ended May 4, less than the 3.24 percent increase expected by analysts on average, according to Thomson Reuters I/B/E/S.
Dollar General's net income rose to $364.9 million or $1.36 per share, from $279.5 million or $1.02 per share a year earlier.
"Our team delivered strong net sales growth, a solid same-store sales increase, and gross margin expansion, while continuing to execute our cost containment strategy," commented Todd Vasos, Dollar General's chief executive officer.
"We are proud of our execution and solid performance, particularly given the significant weather-related headwind we faced during the first quarter. We are pleased with the start of the second quarter, and based on our year-to-date performance and outlook for the remainder of 2018, we are reiterating our full-year guidance."
Vasos added that the company's value and convenience proposition "continues to resonate with customers, and we are excited about the initiatives we have in place."
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine
