GOODLETTSVILLE, Tenn.–Dollar General reported net income of $27.7 million in the second quarter, compared with a net loss in last year’s second quarter of $68.8 million.
The retail chain’s sales enjoyed an increase of 11.2 percent in the quarter, to $2.6 billion, bolstered by a 10.1 percent rise in same-store sales. In addition, it was able to slim down selling, general and administrative expenses as a percentage of sales by 47 percent. Dollar General also pushed up its gross margins by 250 basis points, thanks to reduced markdowns and improved efficiencies in distribution logistics, according to a company statement.
Looking ahead, Dollar General said it expects to open 200 new stores and relocate or remodel about 400 stores during the entire fiscal year. Thus far, it has opened 125 new stores, closed 11 stores and relocated or remodeled 249 stores.