Dollar General reports strong Q1

GOODLETTSVILLE, Tenn. Net income for Dollar General rose nearly 64% for the first quarter of fiscal 2010.

Dollar General reported Tuesday that for the 13 weeks ended April 30, net income rose to $136 million, or 39 cents per diluted share. Conversely, sales increased 11.9% to $3.11 billion in first quarter 2010  compared with $2.78 billion in the 2009 first quarter. Same-store sales increased 6.7% in the 2010 quarter and 13.3% in the 2009 quarter, with customer traffic and average transaction amount contributing to the same-store sales increases in both periods. Sales were strongest in the consumables and seasonal categories.

Meanwhile, operating profit increased by 29% to $290.7 million, or 9.3% of sales, compared with $224.9 million, or 8.1% of sales, in the 2009 first quarter. Excluding the expenses relating to the secondary offering discussed above, first quarter 2010 operating profit would have been $305.8 million, or 9.8% of sales.

“Dollar General’s first-quarter performance marks a great start to the year. Our first-quarter sales were ahead of our expectations. Our same-store sales growth of 6.7% for the quarter was on top of 13.3% growth in the first quarter 2009,” said Rick Dreiling, chairman and CEO. “We generated these positive results by continuing to provide our customers with a convenient shopping experience at everyday low prices. Our strong first-quarter results, coupled with our consistent track record, give us confidence to raise our full-year outlook for 2010.”

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