Dollar General Corporation (NYSE: DG) today reported record sales, operating profit and net income for its fiscal 2013 second quarter (13 weeks) ended August 2, 2013.
“Dollar General delivered another solid quarter. Our same-store sales growth for the second quarter of 2013 accelerated to 5.1 percent. We are very pleased with the increase in customer traffic in our stores. 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,” said Rick Dreiling, Dollar General’s chairman and chief executive officer.
“We remain focused on driving our sales and profitability, capturing high-return growth opportunities, returning cash to our shareholders through share repurchases and creating long-term value,” Mr. Dreiling continued.
Second Quarter Highlights
The Company’s net income increased by 15 percent to $245 million in the 2013 second quarter, compared to net income of $214 million in the 2012 second quarter, and earnings per diluted share (“EPS”) of $0.75 in the 2013 second quarter increased 17 percent over EPS of $0.64 in the 2012 quarter. Adjusted net income, as defined under “Non-GAAP Disclosures” below, was $251 million, or $0.77 per diluted share, in the 2013 second quarter compared to $231 million, or $0.69 per diluted share, in the 2012 second quarter. Reported and adjusted net income in the 2012 second quarter included a benefit of $14.5 million, or approximately $0.04 per diluted share, relating to an adjustment of accruals resulting from the favorable resolution of income tax audits.
Net sales increased 11.3 percent to $4.39 billion in the 2013 second quarter compared to $3.95 billion in the 2012 second quarter. Same-store sales increased 5.1 percent, with increases in both customer traffic and average transaction value. Consumables sales continued to increase at a higher rate than non-consumables in the 2013 quarter, with the most significant growth related to the Company’s newly introduced tobacco products and strong sales of perishables and candy and snacks. Same-store sales growth was solid in seasonal and apparel, and the trend in home products improved from the 2013 first quarter results.