US discounter Dollar General posted a “solid” performance during its second quarter, with both net profit and sales growing on the back of increased traffic in its stores.
“Dollar General delivered another solid quarter,” said chairman and CEO Rick Dreiling.
The company said net income reached US$245m during the 13 weeks to 2 August, up from $214m in the same period of last year.
Sales increased 11.3% to $4.39bn from $3.95bn in the prior year. Same store sales grew 5.1% with “solid” gains in apparel and seasonal products, but gross margin declined 65 basis points to 31.3%.
“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,” Dreiling noted.
During the first half of the year, net income increased 8.9% to $465.6m from $427.6m last year. Sales reached $8.63bn, up from $7.85bn in the prior year.
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By GlobalData“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,” Dreiling added.
