For the fiscal 2013 second quarter ended August 2, Dollar General Corp. posted net income of $245 million, an increase of 15% from the 2012 period, with earnings per diluted share coming in at 75 cents, a 17% gain over 64 cents in the 2012 quarter. Adjusted net income, excluding one time charges and benefits, was $251 million, or 77 cents per diluted share, in the 2013 second quarter compared to $231 million, or 69 cents per diluted share, in the 2012 second period, Dollar General reported.
A Zack’s analyst average estimate called for earnings of 74 cents.
Comparable store sales increased 5.1% based on increases in both customer traffic and average transaction value, the company stated. Net sales advanced by 11.3% to $4.39 billion versus the 2012 second quarter.
Consumables sales continued to increase at a higher rate than non-consumables in the 2013 quarter, Dollar General pointed out, with the most significant growth coming in the newly introduced tobacco products segment and strong sales generation in perishables and candy and snacks. The company added that comp growth was solid in seasonal and apparel, and that home products trends improved from the 2013 first quarter.
Dollar General now plans to open approximately 650 new stores in 2013, it noted, an increase from a previous estimate of 635 new units. In addition, the company related that it plans to remodel or relocate about 550 stores. Dollar General also stated that its new Pennsylvania distribution center should be fully operational in the fiscal 2014 first quarter.