DG earningsDollar General (DG) reported its fiscal 2010 second-quarter net income rose by 51% compared to the year-ago period, as sales climbed 10% and the company worked on further cost reduction and improved inventory control.

For the quarter ending July 30, 2010, the thrift retailer reported net income grew to $141.2 million, or 41 cents per share, up from $93 million, or 29 cents per share in the same quarter a year ago. Excluding items, Dollar General reported earnings of 42 cents per share, topping analyst estimates of 38 cents per share.

Sales grew 10% to $3.2 billion from $2.9 billion. Same-store sales increased 5.1% in the 2010 quarter and 8.6% in the 2009 quarter, with customer traffic and average transaction amounts contributing to growth in both periods. Gross margin improved to 32.2% from 31.2% last year.

"Our outstanding results for the second quarter build on our track record of success over the last ten quarters," said Chairmand and CEO Rick Dreiling. "During the second quarter, we saw same-store sales accelerate in the last month, and I am encouraged with sales so far in the third quarter."

"Fiscal 2010 is on track to be another great year for Dollar General, reflecting our disciplined execution and ability to deliver excellent performance and positioning us for continued growth in the future," said Dreiling.

The company added in its statement on outlook that "The state of the macroeconomic environment, including sustained rates of high unemployment, continues to pressure the consumer in general. Dollar General is closely monitoring how consumers respond to both the economic and the competitive climate."

The dollar store operator has increased its expectations for fiscal 2010 earnings per share to a range of $1.68 to $1.74. Previous guidance was for adjusted earnings of $1.62 to $1.69 per diluted share. The company now expects total sales for the 2010 fiscal year to increase 8.5% to 10.5%, including an increase in same-store sales of 4% to 6%.

Dollar General said it plans to open approximately 600 new stores and to remodel or relocate a total of approximately 500 stores in 2010. Capital expenditures for the fiscal year are currently expected to be approximately $350 million.

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Dollar General is the 5 and 10 cents store of the 21st century... Nothing super fancy, just stuff people need day to day, at a reasonable price. 2 cans of soup $1.00 A six pack of Raman $1.25 Nothing fancy just a simple store.

August 31 2010 at 1:47 PM Report abuse rate up rate down Reply

Dollar General is the NEW Wal-Mart for the post Obamanomics former members of the American middle class.....except the check out lines are much shorter and the customer service is a whole lot better.

August 31 2010 at 8:18 AM Report abuse +1 rate up rate down Reply
Welcome Nan

The Dollar Tree is really the bargain, everything is a dollar, don t gave to check, and they have a lot of things. Laundry soap, rinse, shampoo and rinse. it is a bargain

August 31 2010 at 8:13 AM Report abuse rate up rate down Reply