Dollar General Q3 rises 14%; ups 2014 expansion to 700 new stores
Goodlettsville, Tenn. – Dollar General delivered some impressive financial results for the third quarter of fiscal 2013 as traffic improved and shoppers spent more per transaction on average. The retailer said it plans to open approximately 700 stores in fiscal 2014 and remodel or relocate approximately 525 locations, expanding store selling square footage by 6% to 7%.
Dollar General’s net income increased by a better-than-expected 14% to $237 million in the 2013 third quarter compared to $208 million in year-ago period.
Net sales increased 10.5% to $4.38 billion in the 2013 third quarter compared to $3.96 billion in the 2012 third quarter. Same-store sales increased 4.4%, with increases in both customer traffic and average transaction value. Consumables sales continued to increase at a higher rate than non-consumables in the 2013 third quarter, with the most significant growth due to strong sales of tobacco products, perishables and candy and snacks.
Dollar General once again delivered strong results in the third quarter, even in the face of an ongoing challenging consumer environment,” said Rick Dreiling, Dollar General’s chairman and CEO. “Our merchandising initiatives have continued to be successful in driving traffic and sales. We had solid financial performance across key metrics.”
During the first nine months of this year, the company opened 577 new stores and remodeled or relocated 534 units as part of a full-year plan to open approximately 650 new stores and remodel or relocate another 550 locations. The company said it operated 11,061 stores as of Nov. 1.
Dollar General now expects total net sales for the 2013 fiscal year to increase by 10% to 10.5% from the 2012 fiscal year, including an expected increase in same-store sales of 4% to 4.5%. Previous guidance reflected an increase in total net sales of 10% to 11% and an increase in same-store sales of 4% to 5%.
"Looking ahead, while we are cautious on the current macroeconomic trends, we remain excited about the long-term growth prospects for our business,” Dreiling said. “Dollar General is committed to delivering everyday low prices and convenience for our customers, which has proven to be a winning formula given our long track record of success.”