GOODLETTSVILLE, Tenn.–Net income for Dollar General finished the second quarter at $93.6 million, a whopping 237.7 percent ahead of the same period last year.
The retailer achieved this result thanks to several factors. Net sales were up 11.2 percent, totaling $2.9 billion for the quarter. In addition, Dollar General’s selling, general and administrative expenses shrank by 38 basis points as a percentage of sales. The company took advantage of reduced distribution and transportation costs and increased efficiencies arising from changes in its distribution processes. Also, Dollar General benefited from higher average markups on its second-quarter merchandise sales, thanks to its ability to lower its costs from vendors and to an increase in private-brand products.
In a Dollar General statement, Rick Dreiling, chairman and chief executive officer, also noted the company’s 8.6 percent jump in same-store sales during the quarter. The strong financial numbers “reflect our customers’ positive response to the changes we are making to our stores and are evidence of our ability to grow,” he said.