Dollar General Net Jumps 51 Percent in Second Quarter
August 31, 2010,
GOODLETTSVILLE, Tenn.--Net income for Dollar General totaled $145.2 million in the second quarter, up 51 percent from the second quarter of last year.
The discount retailer managed this strong performance through a net sales gain of 11 percent to $3.2 billion, and a pickup of 101 basis points in gross margin to 32.2 percent. Selling, general and administrative expenses increased by 9.3 percent but fell 32 basis points as a percentage of sales, to 22.9 percent. Same-store sales in the quarter tacked on 5.1 percent.
Rick Dreiling, Dollar General's chairman and chief executive officer, said the company combined "the right strategies, good execution and superior margin performance ... to effectively manage through a volatile quarter."
Based on the second-quarter results, Dollar General now expects sales for all of the 2010 fiscal year to finish 8.5 to 10.5 percent ahead of last year's sales. Same-store sales should rise by from 4 to 6 percent, according to the company's current projections.