Dollar General Profit Jumps

The discount store chain easily beats first-quarter expectations.

Author:: Meredith Derby
Publish date:: May 27, 2004 9:14 AM EDT

Shares of discount retailer

Dollar General

were moving higher in Thursday premarket trading after the company posted a 12.5% increase in first-quarter profit, matching the consensus estimate of analysts.

The company earned $67.8 million, or 20 cents a share, in the period ended April 30, compared with $60.3 million, or 18 cents a share, in the year-earlier period. Total sales were $1.75 billion, up 11.4%, while same-store sales increased 3% in the quarter.

Recently, the stock was up $1.25, or 6.7%, at $20.

Dollar General said gross profit as a percent of sales expanded to 29.3% from 28.8% in the year-earlier period. The company cited higher average markup on beginning inventories.

The Goodlettsville, Tenn.-based company operates 6,930 stores. Dollar stores, in general, are among the fastest growing retailers.