GOODLETTSVILLE, Tenn.–Third-quarter net income for Dollar General totaled $171.2 million, a robust 34 percent ahead of the third quarter of last year.
Increased sales and expense controls powered the dollar-store retailer to its bottom-line gain in the quarter, which ended on Oct. 28. Net sales were up 11.5 percent to $3.6 billion, including a same-store sales rise of 6.3 percent. Rick Dreiling, Dollar General’s chairman and CEO, said the third quarter was the third consecutive period in which the retailer’s same-store sales growth outdid the results from the prior quarter.
While selling, general and administrative expenses increased 9.3 percent in dollars, they fell back 45 basis points as a percentage of sales to 22.4 percent. Dollar General also reported a 43 percent reduction in interest expense. Gross margin slipped 31 basis points to 31 percent.
Dreiling also said Dollar General’s November sales were “strong. Our Thanksgiving week and Black Friday sales suggest that we are well positioned to meet our customers’ expectations” for the remainder of the holidays, he added.