Dollar General raises earnings forecast on steady demand for home goods

imageStock Markets10 minutes ago (May 27, 2021 07:40AM ET)

(C) Reuters.

(Reuters) – Dollar General Corp (NYSE:DG) raised its fiscal 2021 profit forecast on Thursday, as a fresh round of stimulus checks prompted consumers to spend more on home goods.

Discount stores have performed strongly during the pandemic as their strategy of selling low-priced goods at wafer-thin margins attracts customers who turn cost-conscious in a tough year or are on a tight budget.

The chain now expects fiscal 2021 earnings per share between $9.50 and $10.20, compared with its prior range of between $8.80 and $9.50.

Dollar General also expects its fiscal 2021 net sales to increase by up to 1%, compared with its prior range of a flat-to-2% decline.

Net sales fell to $8.40 billion in the first quarter from $8.45 billion a year earlier, beating analysts’ average estimates of $8.28 billion, according to IBES data from Refinitiv.

Dollar General raises earnings forecast on steady demand for home goods

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