Goodlettsville, Tenn. While many retailers are reporting profit losses, Dollar General said Tuesday that its fourth-quarter profits jumped 48%, due to a rise in sales and cost cuts.
The privately held discount retailer reported profits of $81.9 million for the quarter ended Jan. 31, compared with profit of $55.4 million a year earlier. Same-store sales rose 9.4% during the quarter.
Dollar General also reported positive full-year results. The chain reported a profit of $108.2 million, compared with a loss of $4.8 million a year ago. Revenue rose 88% to $10.46 billion from $5.57 billion.
The chain also reported a 4.6% increase in same-store sales for February 2009, compared with February 2008.
Looking ahead, Dollar General expects its capital expenditures in 2009 to be between $250 million and $275 million, due to the costs associated with opening 450 new stores and remodeling or relocating approximately 400 stores, the company reported.