Dollar General Corp (NYSE:DG) shares jumped more than 6% on Thursday after the discount retailer posted second-quarter earnings that beat analyst estimates and raised its full-year guidance.
The company reported net sales of $11.3 billion for the quarter, up 5.2% from a year earlier and ahead of analyst estimates of $11.19 billion.
Earnings per share came in at $2.48, up 33.3% year-over-year and well above the $2 consensus estimate.
Same-store sales rose 3.5%, driven by a 2% increase in customer traffic and a 1.5% rise in average transaction value.
Operating profit climbed 29.2% to $769.2 million, while gross margin expanded 127 basis points to 32.6%.
Dollar General raised its full-year guidance, now projecting EPS of $7.80 to $8, up from a prior estimate and above the $7.39 analyst consensus. The company also lifted its comparable sales outlook to a range of 2.5% to 2.9%, above the 2.42% consensus, and now expects net sales growth of 4% to 4.3% for the year.
The company said it plans to repurchase up to $700 million in shares and declared a quarterly dividend of $0.59 per share.