For the quarter ended July 29, the dollar store retailer posted net income of $146.0 million, or 42 cents a share, up from $141.2 million, or 41 cents a share, a year ago. Adjusted for a $58.1 million charge related to the redemption of the company’s senior notes, income was $181.4 million, or 52 cents a share, up 25% from $145.1 million, or 42 cents a share, a year earlier.
Revenues rose 11.2% to $3.58 billion. Comparable store sales increased by 5.9% on top of a 5.1% increase in the same quarter a year ago due to higher customer traffic and larger transaction amounts, the company said.
Website Launches Sept. 8
The results were well above analysts’ average estimates of 48 cents a share on $3.5 billion in revenues.
Dollar General boosted its full year outlook to a range of $2.22 to $2.30 a share on an expected sales increase of 12% to 14% and comparable store gains between 4% to 6%.
“In this period of economic uncertainty, we continue to focus on factors that we can control, and we still expect to deliver strong financial performance in 2011,” said Rick Dreiling, ceo.
The company’s consumables business, which includes beverages, candy, snacks and other packaged foods, saw a higher growth rate than other segments, with revenue improving 13.7% to $2.6 billion in the second quarter. Its apparel business increased only 1.2%.
Dollar General also announced it is launching its website www.dollargeneral on Sept. 8.
“Dollar General is excited to meet the growing demand for online convenience and value,” said Dreiling. “We have streamlined the online shopping experience, giving customers what they need, as well as what they want, 24 hours a day, seven days a week, 365 days a year.”