GOODLETTSVILLE, Tenn.-The second quarter saw Dollar General break its records for both net income and net sales. Net income reached $245.5 million, up 14.6 percent from last year’s second quarter, and net sales gained 11.3 percent to tally $4.4 billion.
The sales increase for the quarter, which ended on Aug. 2, came on the back of a pickup of 5.1 percent in same-store sales. The retailer posted gains in both customer traffic and average transaction value. Home products maintained an upward trend from the first quarter, and Dollar General also reported strong increases from consumables, seasonal and apparel.
Gross margin was down 65 basis points to 31.3 percent. Selling, general and administrative expenses increased 10.1 percent in dollars but slipped 23 basis points as a percentage of sales, to 22 percent. Interest expense fell 42.2 percent.
Rick Dreiling, Dollar General’s chairman and CEO, said, “We continue to grow our market share and believe that our second-quarter results position us well to deliver our financial outlook for the year.”