Dollar General Q2 profit edges up, to expand into three states, and launch e-commerce

Goodlettsville, Tenn. -- Dollar General Corp. reported Tuesday that its second-quarter net income rose 3.5% to $146 million from $141.2 million in the year-ago period. Sales increased 11% to $3.58 billion; same-store sales rose 5.9%. Its results beat expectations. 

The company also raised its full-year outlook.

On its quarterly conference call, CEO Rick Dreiling said the chain is on track to expand into Nevada, Connecticut, and New Hampshire in the second half of the year. Dollar General opened 301 new stores in the second quarter and expects to grow square footage by about 7% for the year

Dreiling also said the chain is ramping up efforts on its “market” format, which offers fresh produce, meat, and other refrigerated and frozen foods alongside the typical Dollar General offerings. The market stores are delivering the highest same-store sales increases in the company this year, he noted.

The discounter also said Tuesday that it will launch dollargeneral.com on Sept. 8. The site will sell a wide assortment of products -- from cleaning supplies and toys to snacks and stationery -- that it currently sells in its physical stores, as well as exclusive online merchandise.

Dollar General currently operates more than 9,640 stores, or more than any other chain in the United States.