Dollar General, the No.2 U.S. discount retailer by store count, reported lower-than-expected quarterly net sales as consumer spending showed few signs of recovery.
U.S. consumer spending barely rose in September and October, inching up just 0.1 percent each, as consumers chose to save more, according to the Commerce Department.
Dollar General said on Thursday that its same-store sales rose 2.3 percent in the third quarter. The growth was slower than the 2.7 percent expected by analysts polled by research firm Consensus Metrix.
Shares of the company, which increased its share buyback program by $1 billion, rose 1 percent to $66.06 in premarket trading.
Dollar General said it was adopting "zero-based budgeting" - wherein companies plan expenses for a period from scratch instead of basing their budgets on previous data - to cut costs.