Same-store sales increase for 30th straight year

GOODLETTSVILLE, Tenn. — Dollar General Corp. posted fourth quarter same-store gains that beat estimates.

Net sales for the quarter ended January 31 increased 7.6% to $7.2 billion. Same-store sales increased 3.2% compared to the fourth quarter of 2018, driven by increases in both customer traffic and average transaction amount.

The company reported net income of $535.4 million for the fourth quarter of 2019, up 7.5% compared to $483.2 million in the fourth quarter of 2018. Diluted EPS increased 14.1% to $2.10 for the fourth quarter of 2019 compared to diluted EPS of $1.84 in the fourth quarter of 2018.

“We are very pleased with our fourth quarter results, capping off a strong year of performance across the Company,” Dollar General chief executive officer Todd Vasos said in a statement. “Our full-year results were highlighted by double-digit diluted EPS growth, as well as our 30th consecutive year of same-store sales growth. During the fourth quarter, we delivered a healthy 3.2% increase in same-store sales, as well as strong margin performance. In addition, we executed well across many fronts, including our operating priorities and strategic initiatives.

“Our value-and-convenience proposition continues to resonate with both new and existing customers, and our unique real estate footprint remains a competitive advantage. As we enter 2020 from a position of strength, we will continue to keep our core customer at the center of all we do, while remaining steadfast in our efforts to deliver long-term shareholder value.”

For the fiscal year, Dollar General reported a net sales increase of 8.3%, to $27.8 billion. The increase was due to new stores and a 3.9% increase in same-store sales, which included growth in each of the company’s four product categories — consumables, seasonal, home, and apparel.

Net income for the year increased about 6.2%, to $1.7 billion.

Dollar General’s board of directors declared a quarterly cash dividend of $0.36 per share.