Why Dollar General Stock Was Sliding Today
Fool.com - Fri 15 Mar 05:27 GMT

Shares of the discount retailer fell after quarterly profits came up short.

Why Dollar General Stock Was Sliding Today

  So what Top-line growth was solid in the quarter as comparable sales increased 4% and overall revenue was up 8.5% to $6.65 billion, which topped estimates at $6.61 billion.

  The company attributed the strong comps growth in part to an early federal release of SNAP benefits, or food stamps, in the quarter.

  CEO Todd Vasos summed up the performance, saying, "During the fourth quarter we delivered strong same-store sales growth, driven by performance in both consumable and non-consumable product sales, which resulted in our highest two-year same-store sales stack in 21 quarters."

  On the top line, the retailer guided comparable sales growth of 2.5% and overall revenue growth of 7%, roughly in line with expectations at 7.5%.

  Though slower profit growth may be disappointing, the company's long-term strategy remains on track.