Cheers Top Leaderboard Ad

Dollar General’s sales, income rise in second quarter

Print Friendly, PDF & Email

GOODLETTSVILLE, Tenn. — Dollar General Corp. on Thursday posted net income of $306.5 million, or $1.08 a share, in its second quarter, up from $282.4 million, or 95 cents per share, a year earlier.

DG LA exteriorNet sales rose 5.8% to $5.39 billion in the 13 weeks ended July 29. That was shy of analysts’ expectations for sales of $5.5 billion. Dollar General shares were down more than 12% in early trading.

Same-store sales increased 0.7%, compared with the 2.6% growth analysts were expecting. Dollar General said an increase in average transaction amount was offset by declining traffic.

The company also said quarterly sales were suppressed by lower food prices as well as the impact from a reduction of food stamp coverage by several states, which last spring altered criteria for the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program, making thousands of households ineligible for benefits.

“Retail food deflation and a reduction in both SNAP participation rates and benefit levels, coupled with unseasonably mild spring weather, proved to be stronger-than-expected headwinds to our business,” chief executive officer Todd Vasos said in a statement.


NACDS 90th anniversary banner 1

You must be logged in to post a comment Login