Investing.com -- Dollar General Corporation reported third-quarter revenue that surpassed analyst expectations, while earnings fell short. The discount retailer's shares rose over 1% following the announcement.
For the third quarter ended November 1, 2024, Dollar General (NYSE:DG) reported revenue of $10.2 billion, beating the analyst consensus of $10.14 billion. This represents a 5% increase from $9.7 billion in the same quarter last year. Same-store sales grew 1.3% YoY, driven by increases in both average transaction amount and customer traffic.
The company's adjusted earnings per share (EPS) came in at $0.89, missing the analyst estimate of $0.95. This marks a 29.4% decrease from $1.26 in the year-ago quarter. The earnings decline was primarily attributed to $32.7 million in hurricane-related expenses, which impacted the company's operations during the quarter.
"We are pleased with our team's execution in the third quarter, particularly in light of multiple hurricanes that impacted our business," said Todd Vasos, Dollar General's CEO.
Looking ahead, Dollar General updated its fiscal year 2024 guidance. The company now expects net sales growth of 4.8% to 5.1%, compared to its previous forecast of 4.7% to 5.3%. It also narrowed its same-store sales growth projection to 1.1% to 1.4%, from the previous range of 1.0% to 1.6%.
For fiscal year 2024, Dollar General anticipates EPS in the range of $5.50 to $5.90, compared to the analyst consensus of $5.82.
The company also announced plans for significant store growth in fiscal year 2025, including opening approximately 575 new stores in the U.S.