Performing Better Than Expected

When Dollar General was founded in 1939 as J.L. Turner & Son, a wholesale business in Scottsville, KY, Dollar General in 2007 was a $9.2 billion revenues company and the largest competitor in the dollar store segment, with more than 8,000 stores.  In 2007 affiliates of the private equity firm Kohlberg Kravis Roberts & Co., L.P. acquired Dollar General and turned it into a private company.  In 2010, however, Forbes reports that  the Low -Price Retail chain beat the predicted estimates and hikes full yeat forecast. It appears that the company is holding its own when faced with the competition and the external environment.

The company earned $141.2 million in the second quarter, or $0.41 per share, compared to $93.6 million, or $0.29 per share, in the same quarter last year.

Sales rose nearly 11%, to $3.2 billion.

Results beat analyst expectations, and Dollar General ( DG - news - people ) hiked its full-year forecast. It is now looking for earnings in a range of $1.68 to $1.74, compared to its prior forecast of $1.62 to $1.69 per share. Dollar-store rival Dollar Tree ( DLTR - news - people ) hiked its guidance earlier in the month as well. Other competitors include Family Dollar ( FDO - news - people ) and 99 Cent Only Store ( NDN - news - people ).