UPDATE 1-Dollar General results beat as customers flock to stores
Sept 4 (Reuters) - Value retailer Dollar General Corp reported second-quarter results that beat analysts' estimates as efforts such as selling more groceries and brand-name products attracted customers to its stores.
Dollar General also reaffirmed its full-year profit outlook of $3.15-$3.22 per share. Analysts on average were expecting a profit of $3.21 per share, according to Thomson Reuters I/B/E/S.
The company said sales at its consumables business jumped 13 percent in the quarter ended Aug. 2, helped by strong demand for tobacco products, perishables, candy and snacks.
Dollar General recently added tobacco products to its consumables line-up, which brought in three-fourths of the compnay's total second-quarter revenue.
Dollar stores have been battling increased competition from Wal-Mart Stores Inc and other large discount chains, which are increasingly chasing budget-conscious consumers by offering more items priced at $1.00 or less.
Wal-Mart, however, posted a surprise decline in quarterly U.S. same-store sales as shoppers cut discretionary spending due to higher taxes and gasoline prices. The company also cut its full-year revenue and profit forecasts.
Dollar General said second-quarter net income rose to $245.5 million, or 75 cents per share, from $214.1 million, or 64 cents per share, a year earlier.
On an adjusted basis, Dollar General earned 77 cents per share. Analysts had expected a profit of 74 cents per share.
Total sales rose 11.3 percent to $4.39 billion in the quarter ended Aug. 2, beating market estimates of $4.36 billion.
Sales at stores open for at least a year, or same-store sales, increased 5.1 percent. Analysts had expected such sales to rise 4.2 percent.
Dollar General's shares closed at $53.88 on the New York Stock Exchange on Tuesday.