Dollar General Corp (NYSE:DG) trimmed its earnings guidance for the current year and said it plans to reduce the number of new stores it opens next year, with a focus on remodelling and refurbishing.
The US dollar-store chain reported 5% growth in revenues and 1.3% growth in same-store sales for the third quarter, both of which were better than Wall Street expectations.
Adjusted earnings per share of $0.89 missed fell from $1.26 a year ago, also missing Wall Street’s forecast of $0.94.
What's more full-year EPC guidance was trimmed to $5.50 to $5.90, to reflect almost $33 million of costs from hurricane damage, down from a range of $5.50 to $6.20 previously.
Same-store sales growth guidance was tightened to 1.1% to 1.4%, compared to 1.0% to 1.6% before.
Management plans to open 575 new US stores next year and 15 in Mexico, down from a total of 730 planned openings in the current year.
The plan is to invest in remodelling 4,250 of its 20,523 stores in 2025, up from 1,620 in 2024.
Shares in DG were up 1.3% pre-market.