The Dollar General and Dollar Tree chains have both reported solid figures for their most recent fiscal quarters, even as they remained on track to rapidly expand their store presence across the US.
For its second quarter, Dollar General saw sales decline by 0.3% to $8.65bn, with same-store sales down 4.7%, and net profit sliding by 19% to $637m. However, the results outpaced analysts’ forecasts for the quarter, highlighting improved performance at the chain.
For the year, Dollar General now expects net sales to grow by 0.5% to 1.5%, up from its previous forecast of -1% to +1%. It now expects same-store sales to be down 2.5%-3.5%, from a previous forecast of a 3%-5% decline.
Dollar General also re-affirmed its plans to open 1,050 new stores in fiscal 2021, as well as complete 1,750 store remodels and 100 store relocations. The chain currently operates more than 17,400 stores across 46 US states.
Meanwhile, rival Dollar saw its second-quarter sales grow by 1% to $6.34bn, with net profit up 8% to $282.4m, although same-store sales were down 1.2%. The results were slightly below some analysts’ expectations,
For the year, Dollar Tree now expects earnings of $5.40-$5.60 per share, down from a previous forecast of $5.80-$6.05 per share. It also said it expects $185m-$200m in additional transportation costs.
Dollar Tree operates more than 15,700 stores across 48 US states and five Canadian provinces.
