Dollar General Corp. posted a higher quarterly profit and confirmed its outlook for the year, as people shopped for low-priced food and other basic goods.
Dollar General said again that earnings for the year, including an extra week, would be in the range of $2.20 to $2.30 per share.
Analysts, who generally excluded the 53rd week, expect it to earn $2.26 per share.
Dollar General prices most of its merchandise below $10 and is updating its stores to entice shoppers with better layouts, more food and a wider variety of apparel.
The company earned $157 million, or 45 cents per share, in the fiscal first quarter, compared with a profit of $136 million, or 39 cents per share, a year earlier.
Sales rose 10.9 percent to $3.45 billion. Sales at stores open at least a year, or same-store sales, rose 5.4 percent.
Dollar General is majority-owned by private equity firm Kohlberg Kravis Roberts & Co. LP, which brought the company back to the public market in November 2009.
The Goodlettsville, Tennessee-based company has stores in 35 states. It plans to enter Connecticut, Nevada and New Hampshire this year and break into California in 2012.
The company is stocking more children's apparel, including Fisher Price and Disney lines, as well as basic clothing for men and women.
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