Q1 comps, profit increase at Dollar General

GOODLETTSVILLE, Tenn. -- Dollar General reported a 2.2% lift in same store sales for the first quarter as the discounter said sales of consumables led growth in the period.

For the first quarter ended April 29, the operator of 12,483 stores said net sales increased 7 percent to $5.27 billion. Same-store sales increased 2.2% over the 2015 first quarter resulting from increases in both customer traffic and average transaction amount. Gross profit, as a percentage of sales, was 30.6% in the 2016 first quarter compared to 30.5% in the 2015 first quarter, an increase of 16 basis points. The company’s net income was $295 million, or $1.03 per diluted share, in the 2016 first quarter, compared to net income of $253 million, or $0.84 per diluted share, in the 2015 first quarter.

“Dollar General had a strong start to the year with our first quarter 2016 results. Compared to the first quarter of 2015, same-store sales improved 2.2%. We remained keenly focused on ensuring the effectiveness and efficiency of every aspect of our business as we delivered both gross margin expansion and selling, general and administrative expense leverage. This balanced performance contributed to operating profit improvement of 12% and diluted earnings per share growth of 23%. We are confident in our opportunities for growth and remain committed to creating sustainable long-term shareholder value,” said Todd Vasos, Dollar General’s chief executive officer.

During the 2016 first quarter, the company opened 249 new stores and remodeled or relocated 301 stores. For 2016, the company plans to open 900 new stores and remodel or relocate 875 stores. For 2017, the company intends to accelerate its square footage growth with plans to open about 1,000 stores and remodel or relocate about 900 stores.