Dollar General Gains 4% Following Q1 Results

Shares of Dollar General Corp. DG were trading higher by 4 percent early Thursday morning after the company reported its first-quarter results.

Dollar General said it earned $1.03 per share in the first quarter on revenue of $5.27 billion. Wall Street analysts were expecting the company to earn $0.95 per share on revenue of $5.27 billion.

Net sales rose 7.0 percent year-over-year, as same-store sales in the quarter rose 2.2 percent. The company noted the increase in same-store sales was driven by positive results in the consumables category and non-consumables categories including home products.

Related Link: Dollar General Q1 EPS Tops Estimates

Net income for the quarter improved to $295 million from $253 million in the same quarter a year ago.

"Dollar General had a strong start to the year with our first quarter 2016 results. Compared to the first quarter of 2015, same-store sales improved 2.2 percent. We remained keenly focused on ensuring the effectiveness and efficiency of every aspect of our business as we delivered both gross margin expansion and selling, general and administrative expense leverage.

"This balanced performance contributed to operating profit improvement of 12 percent and diluted earnings per share growth of 23 percent. We are confident in our opportunities for growth and remain committed to creating sustainable long-term shareholder value," said Todd Vasos, Dollar General's chief executive officer.