Dollar General’s Q4 profit more than doubles; Opening 625 stores in 2011
New York City — Dollar General Corp. reported Tuesday that its fourth quarter profit more than doubled over last year, boosted by increasing sales and traffic. The discounter generated a higher-than-expected profit of $222.5 million for the quarter ended Jan. 28, up from $87.2 million in the year-ago period. The company also gave a full-year forecast that topped analysts’ estimates.
Sales increased 9.4% to $3.49 billion, and same-store sales rose 3.8%.
Dollar General confirmed it will open about 625 new stores and remodel or relocate 550 locations in 2011. Capital expenditures are expected to range from $550 million to $600 million. Approximately 55% of capital spending is for investment in store growth and development, including new stores, remodels, relocations and purchases of existing store locations
For the full year, Dollar General generated $13.04 billion in sales, up 10.5% over 2009, and an operating profit of $1.27 billion, a 34% increase over 2009.
“Dollar General had a great year in 2010,” said Rick Dreiling, chairman and CEO. “While weather impacted our sales momentum in the second half of the fourth quarter, we effectively balanced our sales, delivering gross margin expansion, expense leverage and excellent financial results.”
The chain is forecasting total sales to increase another 11% to 13% in 2011.
MOGO Design makes large-scale retail debut at Nordstrom’s
SEATTLE, Wash.— MOGO Design, a Seattle-based company that has developed a new and patented magnetic accessory line for tween girls,announced that it has signed a national distribution deal with Nordstrom. The deal will bring the MOGO charm line with more than 200 charms to all Nordstrom full-line store locations throughout the United States and is MOGO Design’s large-scale debut into the fashion specialty retailer channel. MOGO is available in select locations now with the full roll-out to be complete by April 2011.
“Nordstrom has given us a national platform, recognizing that the unique MOGO designs resonate with tweens,” said Paige Clark, president and CEO of MOGO Design. “Our eye-catching charm bands and wide selection of charms will be a fabulous addition to spring fashion for girls seeking to show off their personality and what makes them click with their friends.”
Nordstrom will carry seven colors of the MOGO charm bands as well as the full line of charm collections, offering an array of choices for girls to customize their look to reflect individual personality, interests and moods. MOGO charm bands will carry an ARP of $16 and each charm collection, which includes three magnetic charms, will be an ARP of $12. Consumers will find the MOGO accessory line on display in the Girls 6 to 14 department of Nordstrom stores.
Long-time Olympia Sports president to retire
Olympia Sports announced that, effective Sept. 1, Dick Coffey, president, will be retiring. Coffey has served Olympia Sports for more than 35 years, and for the last 12 years he has served as president. He will continue to be involved after his retirement as a member of the company’s board of directors and will consult on new store growth.
The company has named Ed Manganello, general merchandise manager, as our new president effective Sept. 1. Manganello started his career with Olympia in 1992.
Tim Adams will be named the new GMM when Ed assumes the presidency in September. Adams joined the company in 1995 in the field, and has held, supervised or helped develop every position in the merchandise department.