Dollar General FY Net Gains 7.6 Percent
GOODLETTSVILLE, Tenn.-Dollar General posted a net-income gain of 7.6 percent for its fiscal year ending on Jan. 31, to $1 billion.
Fourth-quarter net income totaled $322.2 million, an increase of 1.5 percent. Net sales for the year totaled $17.5 billion, gaining 9.2 percent and including a 3.3 percent rise in same-store sales--marking the 24th straight year in which Dollar General's same-store sales increased. In the quarter, net sales were up 6.8 percent to $4.5 billion, including a pickup of 1.3 percent in same-store sales.
Rick Dreiling, Dollar General's chairman and CEO, said the quarter saw increases in both customer traffic and average ticket in spite of the severe weather in parts of the quarter, a highly competitive landscape at retail and consumers' uncertainty about spending in the current economic environment.
In the quarter, gross margin declined 58 basis points to 31.9 percent. Selling, general and administrative expenses rose 6.1 percent in dollars but dropped 14 basis points as a percentage of sales, to 20 percent.
For 2014, Dollar General is expecting total sales to rise 8 to 9 percent over the fiscal year just completed. Same-store sales are projected for a 3 to 4 percent increase. "Dollar General is a strong and growing business with high-return store growth opportunities that we intend to capture," Dreiling said.