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Dollar General sales miss estimates as cold weather hits demand

Key Points
  • Dollar General reported first-quarter same-store sales below analysts' forecasts.
  • The discount store chain faced weaker demand for apparel and home products because of cold weather.
  • Same-store sales rose 2.1 percent in the three months ended May 4.
Adam Jeffery | CNBC

Dollar General missed Wall Street forecasts for same-store sales on Thursday as the discount store chain faced weaker demand for apparel and home products because of cold weather.

The news drove the company's shares down 6.4 percent to $90.35 in premarket trading.

Customer traffic at established stores was hit by unseasonably cold and damp weather, the Goodlettsville, Tennessee-based company said, adding that it still saw steady demand for food items.

Sales at Dollar General stores open for more than a year rose 2.1 percent in the three months ended May 4, less than the 3.24 percent increase expected by analysts on average, according to Thomson Reuters I/B/E/S.

The company's net income rose to $364.9 million from $279.5 million year earlier. Excluding one-time items, Dollar General earned $1.36 per share, falling short of analysts' expectations of $1.40.

Net sales rose to $6.11 billion, but missed estimates.

The company maintained its full-year sales and earnings targets.