GOODLETTSVILLE, Tenn.-Strong performances in all of its key metrics enabled Dollar General to break the tape on a record third quarter.
The dollar-store retailer posted net income of a record $207.7 million, up 21.3 percent from the third quarter of last year. Net sales also set a record at $4 billion, an increase of 10.3 percent. The latter included a gain in same-store sales of 4 percent for the quarter, which ended on Nov. 2.
Dollar General’s sales benefited from increases in both traffic and average ticket. In its statement on the financial results, the company identified home as one of its strong growth areas in the third quarter, along with seasonal, consumables and certain basic apparel categories.
Selling, general and administrative expenses, while rising 7.4 percent in dollars, were down 58 basis points as a percentage of sales to 21.8 percent. The bottom line was also bolstered by a drop of 28.2 percent in interest expense. Gross margin finished the quarter at 30.9 percent, a decrease of 11 basis points.
Describing the period as “another solid quarter” for the company, Chairman and CEO Rick Dreiling said Dollar General is on course “to continue building on our strong track record of success.” Dreiling cautioned that the retailer faced a significant same-store sales comparison from 2011’s fourth quarter, near-term concerns that could affect its customers’ confidence and spending, and the continuing challenges of its competitive environment.