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Dollar General's earnings climb in fourth quarter
March 25th, 2013
GOODLETTSVILLE, Tenn. – Dollar General Corp. reported an 8.5% increase in fourth-quarter net income to $317.4 million as sales edged up 0.5% to $4.21 billion.
On a per share basis, earnings at the dollar store chain grew 14.1% to 97 cents per diluted share, beating the average estimate of 90 cents per share among analysts surveyed by Thomson Reuters.
Top-line results, however, fell short of analysts’ target of $4.26 billion. The modest sales increase reflected the fact that the final quarter of fiscal 2011 included an extra 14th week versus just 13 weeks in the most recent quarter. Excluding $289 million in sales for the week ended February 3, 2012, net sales for the fiscal 2012 quarter rose 8%.
Same-store sales based on comparable 13-week periods rose 3%, driven by increases in both customer traffic and average transaction.
Full-year net income soared 24.3% to $952.7 million on an 8.2% rise in sales to $16.02 billion.
“Dollar General had yet another outstanding year in 2012 including exceptionally strong fourth-quarter results,” Rick Dreiling, chairman and chief executive officer, said in a statement. “We grew our market share and invested strategically to continue to win with our customers. These results demonstrate the strength of our business strategy, and we believe we are very well positioned for future growth.”