Retailer plans to step up expansion pace this year

GOODLETTSVILLE, Tenn. — Dollar General Corp. on Thursday reported quarterly same-store sales gains that beat analysts’ expectations. Total sales and net income also showed solid increases in the quarter and fiscal year, according to the company.

Same-store sales increased 2.2% in the fourth quarter ended January 29, and 2.8% in the fiscal year. Net sales increased 7% in the quarter and 7.7% in the year. Dollar General also reported net income of nearly $1.17 billion for the year, up about 9.4%. Dollar General chief executive officer Todd Vasos called 2015 “another great year,” noting that it was the 26th year in which the company reported positive same-store sales growth.

“In the fourth quarter, we effectively balanced sales and operating profit through our toughest quarterly comparison of the year to deliver record results leading to full-year diluted EPS growth of 13%,’’ Vasos said in a statement. “Looking ahead, Dollar General continues to have significant opportunities for growth. The goal of our long-term growth model that we announced today is to drive 11% to 17% total annual shareholder return per year through EPS growth and dividend yield. Considering the financial results we have delivered over the last three years and consistent with how we are managing the business, our growth model is focused on increasing long-term shareholder value by driving profitable sales growth, capturing growth opportunities, enhancing our position as a low-cost operator and investing in our people. For 2016, we plan to return approximately $1.3 billion to shareholders through anticipated quarterly cash dividends and consistent share repurchases.”

Dollar General opened 730 new stores in 2015, and remodeled or relocated 881 outlets. The company plans to pick up the growth pace this year, opening about 900 new stores and relocating or remodeling another 875. Capital expenditures for the year are expected to be in the range of $550 million to $600 million. Dollar General finished the fiscal year with 12,483 stores in 43 states.