Dollar General (NYSE:DG) shares closed 10.7% higher on Thursday after the discount retailer chain reported it earned a forecast-beating $1.30 per share in its fourth quarter ended January 29 and planned to buy back about $1bn in shares this year.
Dollar General also raised its quarterly dividend to 25 cents per share from 22 cents.
The retailer's quarterly sales rose 7 percent as demand increased for items such as candy and snacks, perishables, tobacco, and food.
The company's net income rose to $376.2 million, or $1.30 per share, in the fourth quarter from $355.4 million, or $1.17 per share, a year earlier. Net sales rose to $5.29 billion from $4.94 billion.
Shares ended up 10.7% at $83.23.