GOODLETTSVILLE, Tenn.–Net income for Dollar General in its fiscal fourth quarter totaled $87.2 million, 6.5 percent up from the fourth quarter of last year.
The chain managed this increase partly through an 11.9 percent gain in net sales, which were $3.2 billion in the fourth quarter and which included a 7.4 percent hike in same-store sales. In addition, Dollar General’s gross margin rose 275 basis points, thanks to higher net markups and reduced purchase costs from vendors. Selling, general and administrative expenses rose 21 percent in the quarter.
For Dollar General’s fiscal year as a whole, net income jumped 214 percent to $339.4 million, while net sales totaled 11.3 billion, 12.8 percent higher than in the prior fiscal year. Same-store sales for the year rose 9.5 percent.
For 2010, Dollar General said it expects sales to rise from 8 to 10 percent, with same-store sales projected to increase by 4 to 6 percent.