Shares of Dollar General Corp. (NYSE: DG) slid in pre-market trading on Thursday as the variety store retailer delivered mixed Q3 results. The retailer posted sales of $9.5 billion, up 11.1% year-over-year and beating Street estimates by $70 million.
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Diluted earnings increased 12% year-over-year to $2.33 per share in Q3 but missed analysts’ estimates of $2.54.
In the third quarter, DG “experienced unanticipated delays in acquiring additional temporary warehouse space sufficient for its inventory needs” resulting in higher supply chain and transportation costs.
Considering these cost pressures, DG lowered its diluted earnings outlook in the range of $3.15 to $3.30 per share for the fourth quarter. This indicated a diluted EPS growth in the range of around 7% to 8% for FY22 versus its earlier expectation in the range of around 12% to 14%.
Wall Street analysts are bullish about DG with a Strong Buy consensus rating based on five unanimous Buys.