Dollar General Q1 profit jumps 36%; on track for 625 new stores and 550 remodels
New York -- Dollar General Corp. on Monday reported a 36% jump in quarterly profit and raised its expectations for the year as its momentum continued.
Dollar General earned $213.4 million in the fiscal first quarter ended on May 4, up from $157.0 million a year earlier. Sales rose 13% to $3.9 billion. Same-store sales increased 6.7%.
Dollar General is starting off 2012 with strong performance in the first quarter due to excellent same-store sales growth of 6.7%, representing the fifth consecutive quarter of accelerating improvement,” said Rick Dreiling, chairman and CEO. “I believe we are positioned well to invest in the future of our business as we continue to redefine small-box retailing and reinforce Dollar General’s role as America’s general store.”
The company plans to open approximately 625 stores, including 40 Dollar General Market stores in 2012. In addition, it plans to remodel or relocate a total of approximately 550 stores.
Capital expenditures are expected to be in the range of $600 million to $650 million. Approximately 65% of capital spending is for investment in store growth and development, including new stores, remodels, relocations and purchases of existing store locations; approximately 15% is for transportation, distribution and special projects; the remaining 20% is for maintenance capital.