Dollar General Profit Jumps 47 Percent in Second Quarter
GOODLETTSVILLE, Tenn.-Net income for Dollar General in its fiscal second quarter totaled $214.1 million, a gain of 46.6 percent over last year's second quarter.
Increases in sales and reductions in interest expense and "other" expense helped fuel the dollar-store retailer's bottom line in the quarter, which ended on Aug. 3. Net sales rose 10.4 percent to $3.9 billion, including a pickup of 5.1 percent in same-store sales. Dollar General cited home and seasonal as among its star performers among departments in the quarter, along with apparel categories such as sleepwear, accessories and intimates. Interest expense was slimmed by 41.1 percent, and "other" expenses were reduced by 54.4 percent.
Gross margin slipped 13 basis points to 32 percent. Selling, general and administrative expenses rose 9.7 percent in dollars, but fell 15 basis points as a percentage of sales to 22.2 percent.
Looking ahead, Dollar General said it expected total sales for fiscal 2012 to rise from 8 to 9 percent. Same-store sales are projected to increase by from 4 to 5 percent.