Deflation and lower SNAP benefits whack results at Dollar General

|About: Dollar General Corporation (DG)|By:, SA News Editor

Dollar General (NYSE:DG) reports same-store sales fell 0.1% during a "challenging" Q3.

The retailer saw strength in consumables and weakness in the apparel, seasonal and home products categories.

Gross margin fell 49 bps to 29.8% of sales as higher markdown took a toll.

SG&A expenses were up 50 bps to 22.5% of sales.

Inventort +5.6% Y/Y to $3.49B.

The company paid an effective tax rate of 36.2% in Q3 vs. 37.0% a year ago.

"We saw an acceleration in headwinds from average unit retail price deflation and reductions in SNAP benefits," says CEO Todd Vos on the quarter.

Previously: Dollar General misses by $0.04, misses on revenue (Dec. 1)

DG -4.94% premarket to $73.50.