New York, NY, United States (4E) – Dollar General Corp. reported higher profit in its fiscal fourth quarter due to higher sales, although results fell below analysts’ expectations.
In the quarter ended Jan. 31, earnings stood at $322.2mn, or $1.01 per share, up from $ 317.4mn, or 97 cents per share, from the previous year.
The company predicted per-share earnings of $3.45 to $3.55 for the current fiscal year, which is below the $3.69 a share predicted by analysts surveyed by Thomson Reuters.
The company said it predicts this year’s total sales to grow 8 percent to 9 percent, with same-store sales rising 3 percent to 4 percent, though overhead costs are expected to grow, partly because of incentive compensation and costs related to the health care law.
Same-store sales rose in the most recent period, climbing 1.3 percent, while customer traffic and average transaction amounts also jumped. The severe weather has hurt sales as there were many days with significant store closures, and a highly competitive retail environment, according to Chief Executive Rick Dreiling.