Dollar General rallies on Q2 earnings and revenue beat, boost to full-year guidance

Dollar General rose 6% in early trading Thursday after the discount chain crushed Q2 earnings estimates and raised its full-year guidance.

Diluted earnings per share landed at $1.86, well ahead of the Street’s estimate of $1.58. Revenue reached $10.7 billion, marginally ahead of expectations. Same-store sales grew 2.8%, coming in above forecasts of 2.5%.

Looking ahead: Dollar General raised its full-year outlook, now guiding for EPS between $5.80 and $6.30, up big from prior expectations of $5.20 to $5.80 and much better than Wall Street’s forecast of $5.78. Net sales growth is expected to land between 4.3% and 4.8%, compared with its previous range of 3.7% to 4.7%.

Management said the boost to its outlook was “primarily to reflect its outperformance in the second quarter, as well as its improved outlook for the second half of the year.”

The retailer has been a winner among budget-conscious shoppers, who continue to spend more per trip as inflation squeezes household budgets.

Shares were up 46% year to date heading into the earnings release.