Dollar General beats estimates with record results
Goodlettsville, Tenn. – Dollar General reported record net income and sales for the second quarter of this year. In addition, same-store sales growth beat analyst estimates by almost a full percentage point.
Net income increased by 15% to $245 million in the second quarter of fiscal 2013, compared to net income of $214 million in the second quarter of the prior fiscal year. Net sales increased 11.3% to $4.39 billion, compared to $3.95 billion in the second quarter of the previous year. Analysts had expected net sales of $4.36 billion.
Same-store sales increased 5.1%, compared to analyst predictions of 4.2%, with increases in both customer traffic and average transaction value. Consumables sales continued to increase at a higher rate than non-consumables in the 2013 quarter, with the most significant growth related to newly introduced tobacco products and strong sales of perishables and candy and snacks.
“We are very pleased with the increase in customer traffic in our stores,” said Rick Dreiling, Dollar General’s chairman and CEO. “We continue to grow our market share and believe that our second quarter results position us well to deliver our financial outlook for the year."
For the 2013 fiscal year, the company expects total sales to increase 10% to 11% and same-store sales to increase 4 to 5%.
Eva Shockey teams up with Crosman to promote shooting sports
Crosman Corporation — an international designer, manufacturer and marketer of shooting sports products — has entered into a long-term agreement with Eva Shockey, daughter and hunting partner of professional hunter, Jim Shockey, to promote the shooting sports.
“My dad always encouraged me to join him on his outdoor adventures,” said Shockey, “and his teachings are some of my most treasured memories. It’s that sense of sharing what I’ve learned that has me so excited about joining the Crosman family. I always knew that learning to shoot was fun, but now I understand that teaching folks how to shoot is just as rewarding. What better way to do that, than by teaming up with my friends at Crosman? Crosman and Benjamin airguns are the perfect way to introduce people to the sport of shooting.”
“Eva’s hard work, talent and unique point of view have fueled her rapid rise within the outdoor industry. But it’s her genuine enthusiasm for the outdoor lifestyle that makes her so approachable and inspires others to get out there themselves,” said Crosman’s VP of marketing, Jennifer Lambert. “We’re thrilled she’s joined the Crosman family, and we have a number of exciting initiatives planned.”
Eva Shockey spends more than 250 days a year traveling the world to hunt and co-host the "Jim Shockey’s Hunting Adventures" television show as well as representing the Outdoor Channel at various events across the United States and Canada.
“I credit my family for fostering my passion for conservation and love of adventure, and now that I’ve partnered with Crosman, I’m eager to encourage more people to get involved and enjoy the sport of shooting,” added Shockey. “It’s something you can share with the whole family.”
Rochester, N.Y.-based Crosman Corporation designs and manufactures Crosman and Benjamin airguns, CenterPoint optics, and Crosman, Game Face, and Undead Apocalypse airsoft products. Crosman is a licensee of U.S. Marine Corps airsoft, U.S. Army airsoft, and the exclusive worldwide licensee of Marlin airguns.
Dollar General is smokin’ in the second quarter
GOODLETTSVILLE, Tenn. — Dollar General reported record sales, operating profit and net income for its second quarter ended Aug. 2, driven, in part, by the company’s newly introduced tobacco products and strong sales of perishables and candy and snacks.
The company’s net income increased 15% to $245 million in the quarter, from $214 million in the year-ago quarter, and earnings per diluted share of $0.75 in the quarter increased 17% over EPS of $0.64 in the year-ago quarter.
Net sales increased 11.3% to $4.39 billion in the quarter, from $3.95 billion in the year-ago quarter. Same-store sales increased 5%, with increases in both customer traffic and average transaction value. Consumables sales continued to increase at a higher rate than non-consumables in the 2013 quarter. Same-store sales growth was solid in seasonal and apparel, and the trend in home products improved from this year’s first quarter results.
“Dollar General delivered another solid quarter. Our same-store sales growth for the second quarter of 2013 accelerated to 5%. We are very pleased with the increase in customer traffic in our stores. We continue to grow our market share and believe that our second quarter results position us well to deliver our financial outlook for the year,” said Rick Dreiling, Dollar General’s chairman and CEO.
Gross profit increased by 9% and, as a percentage of sales, decreased by 65 basis points to 31.3% in the 2013 second quarter. The majority of the gross profit rate decrease in the quarter as compared to the year-ago quarterwas due to an increase in the mix of consumables and increased sales of lower margin consumables, including the company’s newly introduced tobacco products and expanded perishables offerings, all of which contributed to lower initial inventory markups.
The company previously estimated opening 635 new stores and has adjusted that number to 650. It also plans to remodel or relocate approximately 550 stores. Square footage is again expected to increase by approximately 7%. Dollar General anticipates that its new Pennsylvania distribution center will be fully operational in the first quarter of fiscal 2014.