Dollar General Corp. on May 31 reported fiscal first-quarter earnings increased year over year but fell short of expectations as poor weather contributed to fewer customer visits.
The company reported diluted earnings per share for the quarter ended May 4, jumped 33.3% year over year to $1.36 from $1.02 in the period to May 5, 2017. That missed a mean consensus of analysts' estimates for GAAP EPS of $1.39, according to data compiled by S&P Global Capital IQ.
Dollar General recorded net income rose 30.5% year over year to $364.9 million from $279.5 million.
Net sales jumped 9% to $6.11 billion from $5.61 billion. Same-store sales increased 2.1%.
"The company believes that the effect of unseasonably cold and damp weather on certain product categories negatively impacted same-store sales in the quarter," it said in a statement.
U.S federal tax reform helped push the effective income tax rate in the first quarter to 21.6% compared to 37.2% a year ago.
Dollar General reiterated its full-year guidance. The company continues to expect net sales growth of about 9% and same-store sales growth in the mid-two-percent range. Diluted EPS for the fiscal year is anticipated at $5.95 to $6.15, assuming an estimated effective tax rate of 22% to 23%.
The company also expects to open about 900 new stores, remodel 1,000 stores and relocate 100 stores during the fiscal year.
Dollar General repurchased during the quarter $150 million of its common stock, or 1.6 million shares, at an average price of $94.41 per share. The company has repurchased 83 million shares for $5.3 billion, at an average price of $63.80 per share, since the beginning of a share repurchasing program in December 2011.
