Dollar General Corporation (NYSE:DG) Q3 2017 Earnings Conference Call Transcript
Dec 07, 2017 • 10:00 am ET
Good morning. My name is Hope, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dollar General Third Quarter 2017 Earnings Call. Today is Thursday, December 7, 2017. (Operator Instructions) This call is being recorded. Instructions for listening to the replay of the call are available in the Company's earnings press release issued this morning.
Now I would like to turn the conference over to Ms. Mary Winn Pilkington, SVP of IR and Public Relations. Ms. Pilkington, you may begin your conference.
Mary Winn Pilkington
Thank you, Hope, and good morning, everyone. On the call today are Todd Vasos, our CEO; and John Garratt, our CFO. After our prepared remarks, we'll open up the call for questions. Our earnings release issued today can be found on our website at dollargeneral.com under Investor Information, News and Events.
(Forward-Looking Cautionary Statements) At the end of our prepared remarks, we'll open the call up for your questions. Please limit your questions to one and one follow-up question if necessary. Now, it is my pleasure to turn the call over to Todd.
Thank you, Mary Winn, and welcome to everyone joining our call. I'm pleased with our third quarter performance, as the Dollar General team delivered strong same-store sales growth, driven by an increase in average transaction amount and positive traffic, all while expanding gross profit margin and exhibiting good underlying expense control. We are excited about our plans for the fourth quarter and into the new year.
Our third quarter results were achieved even in the midst of the hurricanes that impacted our business during the quarter. We estimate that the net negative impact of these storms in the quarter, including loss of inventory and incremental repairs for damages and other expenses, offset by increased sales, was approximately $0.05 per diluted share.
I'd like to thank and also recognize all of the Dollar General teams that worked extensively to be there in advance of the storms and afterwards to support our communities during the recovery process. When our employees, customers and communities needed us, team members from across the organization were there providing support for our impacted stores and co-workers. To all the teams that worked so hard to ensure our co-workers' safety, to secure and staff our stores and to meet the needs of our customers, thank you. This dedication to our mission of serving others is what makes us and our Company so special.
Turning now to the highlights of the third quarter of 2017. Net sales increased 11% to $5.9 billion, and same-store sales grew 4.3% as compared to the prior-year third quarter. Same-store sales for the quarter benefited by an estimated 30 basis points to 35 basis points from incremental sales due to the hurricanes. Same-store sales growth was positive for both consumables and combined non-consumable categories, with stronger growth in consumables. Our highly consumable market share trends in syndicated data continue to exhibit strength with high-single-digit share growth in both units and