This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Dollar General Corporation (NYSE: DG) today reported strong sales, operating profit and net income for its fiscal 2012 second quarter (13 weeks) ended August 3, 2012.
“Dollar General had another strong quarter,” said Rick Dreiling, chairman and chief executive officer. “Our same-store sales increase of 5.1 percent demonstrates the ongoing execution of the initiatives around our key operating priorities and is evidence of our continued importance to our customers.”
“We are pleased with the start of our third quarter and have refined our expectation for full year same-store sales growth to 4 to 5 percent, an increase from our previous expectation of 3 to 5 percent. In addition, we are raising our full year adjusted earnings per share guidance to a range of $2.77 to $2.85, including a $0.04 per share benefit from the settlement of an income tax audit in the second quarter, from our previous guidance of $2.68 to $2.78. We are well positioned to continue to broaden our appeal to more customers and to provide them with convenience and everyday low prices they can depend on.”
Second Quarter Highlights
The Company’s net income increased by 47 percent to $214 million in the 2012 second quarter, compared to net income of $146 million in the 2011 second quarter. Adjusted net income, as defined in the accompanying table, increased 27 percent to $231 million in the 2012 quarter, compared to $181 million in the 2011 quarter. Diluted earnings per share (“EPS”) increased to $0.64 in the 2012 second quarter from $0.42 in the 2011 quarter. Adjusted diluted EPS increased by 33 percent to $0.69 in the 2012 second quarter from $0.52 in the 2011 second quarter.
Sales increased 10.4 percent to $3.95 billion in the 2012 second quarter compared to $3.58 billion in the 2011 second quarter. Same-store sales, based on a comparison of the 13-week periods ended August 3, 2012 and August 5, 2011, increased 5.1 percent, with increases in customer traffic and average transaction amount driving the performance. Consumables sales continued to increase at a higher rate than non-consumables in the 2012 quarter, with the most significant growth related to changes in and further expansion of the Company’s candy and snacks and perishable foods. Sales growth was also strong in the Company’s home and seasonal categories, as well as certain departments in apparel, including accessories, sleepwear and intimates.