GOODLETTSVILLE, Tenn.-In the face of a challenging economy, Dollar General was able to post new records for net income and sales in its fiscal third quarter ending on Nov. 1.
Net income rose 14.3 percent to $237.4 million, and net sales jumped 10.5 percent to $4.4 billion. Same-store sales in the quarter were up 4.4 percent, thanks to increases in both traffic and average transaction value.
Rick Dreiling, Dollar General’s chairman and CEO, said, “Our merchandising initiatives have continued to be successful in driving traffic and sales. We had a solid financial performance across key metrics, including better-than-anticipated gross-margin performance and solid SG&A leverage.”
Gross margin declined by 61 basis points to 30.3 percent, the result of an increase in the sales of lower-margin consumables, partially offset by reduced fuel costs and increased transportation efficiencies. Selling, general and administrative expenses, while rising 8.5 percent in dollars, were down 40 basis points as a percentage of sales to 21.4 percent.
Dollar General said it now expects net sales for the fiscal year as a whole to gain 10 to 10.5 percent over the prior year, including an increase in same-store sales of from 4 to 4.5 percent.