Dollar General Heads Into the Black in Third Quarter
GOODLETTSVILLE, Tenn.-Turning around from a third-quarter net loss of $7.3 million last year, Dollar General posted net income of $75.6 million for the third quarter of this year.
The profit resulted largely from a 12.7 percent boost in sales, which totaled $2.93 billion in the quarter. Although both selling, general and administrative expenses and cost of goods sold increased in the quarter, they declined as a percentage of sales--with SG&A; percentage falling 95 basis points and cost of goods sold dropping 112 basis points.
Dollar General also slimmed its interest expense by 11 percent in the third quarter.Rick Dreiling, chairman and chief executive officer, said Dollar General also recorded a 9.2 percent jump in same-store sales in the quarter, reflecting "the positive customer response to the changes we are making in our store experience and merchandise category management." A company statement added that the discount retailer is "cautiously optimistic" regarding the remainder of the current fiscal year, which will end on Jan. 29, 2010.