Dollar General sailed through the third quarter despite internal supply chain challenges.
The company posted a net income of $526.2 million, or $2.33 per diluted share, versus $487 million, or $2.08 per diluted share, in the 2021 quarter.
Dollar General beat a Yahoo Finance-published analyst consensus diluted earnings per share estimate of $2.53 and a sales estimate of $9.43 billion.
Comparable sales advanced 6.8% year over year as average transaction amount and customer traffic showed gains. Net sales increased 11.1% to $9.46 billion in the quarter year over year. The company stated that positive contributions from new stores and growth in comps drove the net sales increase, which was partially offset by the impact of store closures. Growth in the consumables category, partially offset by declines in each of the apparel, seasonal and home products categories, buoyed the comps.
Operating profit increased to $735.5 million versus $665.6 million year-past period.
In introducing the financial results, Jeff Owen, Dollar General CEO, said, “We are pleased with our strong sales growth in the quarter, as well as a modest increase in customer traffic and continued share gains in both consumable and non-consumable product sales, all of which we believe are a testament to the strength of the value and convenience proposition we offer our customers. Despite the cost pressures we experienced during the quarter, as well as challenges within our internal supply chain resulting in higher-than-anticipated distribution and transportation costs, our team was resilient and worked hard to deliver double-digit diluted EPS growth. We believe the majority of these and other gross margin pressures are largely temporary, and we are confident in our plans to drive greater supply chain efficiencies moving forward.”
Owen added that Dollar General continues “to make progress on our strategic initiatives and operating priorities during the quarter, including executing nearly 800 real estate projects. Looking ahead, we are pleased to announce today that we plan to execute approximately 3,170 real estate projects in the United States in fiscal year 20231, including approximately 1,050 new stores. We are excited about our plans to extend our ability to serve more customers, and believe we are well-positioned to continue delivering long-term sustainable growth and value for our shareholders.”
