Dollar General’s 3Q earnings slide 7%

GOODLETTSVILLE, Tenn. — Dollar General put up weak earnings numbers for the third quarter in an environment that has largely favored bargain stores, with so many people still looking to cut costs where they can.

The Goodlettsville, Tenn.-based retailer cited lower food prices and a cut in food-stamp benefits in several states that forced low-income customers to trim spending.

Almost two dozen states have altered the Supplemental Nutrition Assistance Program, giving a smaller pool of people access to assistance.

Dollar General has a strong presence in many of the states involved in the cutbacks.

Profits fell 7 percent and comparable-store sales, a closely watched barometer in the retail industry, fell as foot traffic in Dollar General stores faded.

Industry analysts had expected a slight increase in same-store sales, but they slipped 0.1 percent during the quarter.

Net income fell to $235.3 million, or 84 cents per share, from $253.3 million, or 86 cents per share, in the same quarter a year ago. Revenue rose 5 percent to $5.32 billion.

Shares of Dollar General Corp. fell $4.97 to close Thursday at $73.48.