Dollar General Sets Profit, Sales Records in Q1

GOODLETTSVILLE, Tenn.-Dollar General began its fiscal year by setting new records for first-quarter net income and net sales.

Net income in the quarter, which ended on May 3, rose 3.1 percent to $220.1 million. Net sales increased 8.5 percent to $4.2 billion, including a pickup of 2.6 percent in same-store sales. Rick Dreiling, Dollar General's chairman and CEO, said the sales gains came largely from strong growth in the consumables category, offset by weaker sales in seasonal and weather-related products.

Gross margin in the quarter dropped 89 basis points to 30.6 percent. Selling, general and administrative expenses were up 6.7 percent in dollars but down 37 basis points as a percentage of sales, to 21.3 percent.

For the remainder of the year, Dreiling said, Dollar General is projecting same-store sales growth of from 4 to 5 percent, with consumables continuing to provide a key driver. "Sales of non-consumables are expected to remain challenging, and we anticipate a continued shift to lower margin items within consumables and higher inventory shrink," he said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money