(Reuters) – Dollar General Corp raised its fiscal 2021 profit forecast on Thursday, as a fresh round of stimulus checks prompted consumers to spend more on home goods.
Discount stores have performed strongly during the pandemic as their strategy of selling low-priced goods at wafer-thin margins attracts customers who turn cost-conscious in a tough year or are on a tight budget.
The chain now expects fiscal 2021 earnings per share between $9.50 and $10.20, compared with its prior range of between $8.80 and $9.50.
Dollar General also expects its fiscal 2021 net sales to increase by up to 1%, compared with its prior range of a flat-to-2% decline.
Net sales fell to $8.40 billion in the first quarter from $8.45 billion a year earlier, beating analysts’ average estimates of $8.28 billion, according to IBES data from Refinitiv.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Anil D’Silva)
