GOODLETTSVILLE, Tenn.–First-quarter net income ballooned by 64 percent for Dollar General, finishing at $136 million.
The retail chain firmed its bottom line through a 12 percent gain in net sales for the quarter, totaling $3.1 billion, which included a 6.7 percent rise in its same-store sales. Also, Dollar General picked up 136 basis points in its gross margin, to 32.1 percent, and cut 19 percent from its interest expense. These factors helped offset a 29 percent increase in its selling, general and administrative expense.
Rick Dreiling, chairman and chief executive officer of the dollar-store chain, called the first-quarter performance “a great start to the year,” adding that the sales increase was ahead of the company’s expectations. For all of this fiscal year, Dollar General said it expects net sales to rise by from 8 to 10 percent, with a pickup in same-store sales of from 4 to 6 percent.
The company also said it will open 600 new stores and remodel or relocate another 500 stores this year.