US: Dollar General Q3 net income soars 21%
- Net income grew 21% to US$208m
- Sales increased 10.3% to US$171m
- "Hanging apparel sales were weak"
US discounter Dollar General has posted a jump in third quarter net income, yet said it remains cautious for the remainder of the year despite recording "encouraging" Thanksgiving weekend and early holiday sales.
The retailer recorded a 21% increase in net income to US$208m over the quarter ended 2 November, up on the $171m recorded in the same period of the prior year.
Sales increased 10.3% to $3.96bn as same-store sales grew 4%. Dollar General attributed the growth to increases in customer traffic and average transaction amount.
"Sales growth in home and seasonal categories, as well as certain basic apparel departments, was strong," the company said. However, "overall, hanging apparel sales were weak".
"Dollar General delivered another solid quarter and we expect to continue building on our strong track record of success," said chairman and CEO Rick Dreiling.
"Although our performance over the Thanksgiving weekend and start of the holiday season has been encouraging, we continue to be cautious for the remainder of the year.
"We are facing a significant same-store sales comparison from our 2011 fourth quarter, which included very strong January sales, growing near-term pressures are impacting our customers' confidence and spending, and a challenging competitive environment.
"Dollar General is keenly focused on our ability to capture market share, build and maintain customer loyalty and deliver strong financial returns that support our sustainable growth for the long term."
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