Dollar General Corporation (NYSE:DG) announced its third quarter financial results earlier today. The company saw net income increase 34% from last year to $171 million or $0.50 per diluted share. The company’s operating profit increased 13% to $311 million, or 8.6% of sales. Dollar General also raised its guidance for the rest of 2011.
“Dollar General delivered another great quarter, and we expect to continue to build upon our strong track record of delivering excellent results for our shareholders,” said Rick Dreiling, chairman and chief executive officer. “Our same-store sales increased 6.3 percent in the third quarter, representing our third consecutive quarter of accelerating same-store sales growth and demonstrating our ability to balance the challenges of pricing and rising input costs. Based on these results, we are raising our full year adjusted earnings per share guidance to the range of $2.29 to $2.32.”
Dreiling added, “I am also pleased to announce that, given this continued strong financial performance, our Board of Directors has approved a new program authorizing the Company to repurchase up to $500 million of our common stock. We expect that any share repurchases would be carried out in a manner that will enable us to continue to invest prudently in our stores and infrastructure to support sustainable growth for the long term.”
Dollar General saw sales increase 11.5% in the third quarter to $3.60 billion compared to $3.22 billion in the same quarter last year.
The company raised its guidance for the full fiscal year and now expects to report adjusted diluted earnings per share in a range of $2.29 to $2.32. For the full 2011 fiscal year, Dollar General plans to open 625 stores with 40 of them being Dollar General Market stores. It also plans to remodel 550 stores.
Shares of Dollar General Corp. are up 3.38% in pre-market trading at $41.29.