Dollar General Outperforms Dollar Tree; Discounters Overall Continue To Thrive

Dollar General saw net sales jump 10.6% to $6.44 billion in Q2 as stronger sales of consumables, seasonal items and apparel offset declines in home goods. The company also raised its fiscal 2018 outlook for net sales to rise between 9% and 9.3%, compared with previous guidance of rising approximately 9%.

The discounter continues to grow rapidly, reiterating that it plans to open approximately 900 new stores in fiscal 2018. It also will remodel 1,000 locations and relocate 100 stores.

Dollar General saw its profits rise 38% to $407.2 million, or $1.52 a share, exceeding analysts’ expectations by $0.03 cents. Dollar General now expects full-year same-store sales growth in the mid-to-high 2% range, compared with its previous estimate in the…