Wednesday September 5th, 2012 - 11:20AM
For the second quarter, Dollar General Corp. today reported that its adjusted net income, excluding extraordinary items, increased 27% to $231 million. Adjusted diluted earnings per share increased to 69 cents in the second quarter from 52 cents in the 2011 period.
A Thomson Reuters average analyst estimate put earnings per share at 64 cents.
With extraordinary items including a tax benefit accounted, net income increased 47% to $214 million versus the period last year. Diluted earnings per share advanced to 64 cents in the quarter from 42 cents in the 2011 period.
Overall, Dollar General sales increased 10.4% to $3.95 billion in the second quarter as comparable store sales gained 5.1%. Increases in customer traffic and average transaction drove comp performance, the company stated.
Consumable and non-consumable product categories helped drive comps. Home and seasonal segments, as well as accessories, sleepwear and intimates in apparel, had the strongest comp gains in non-consumables, the retailer stated, although consumables, especially candy and snacks, and perishable foods, was the stronger driver of same-store revenues.
"Our same-store sales increase of 5.1% demonstrates the ongoing execution of the initiatives around our key operating priorities and is evidence of our continued importance to our customers," said Rick Dreiling, Dollar General chairman and CEO. "We are pleased with the start of our third quarter and have refined our expectation for full year same-store sales growth to 4% to 5%, an increase from our previous expectation of 3% to 5%. In addition, we are raising our full year adjusted earnings per share guidance to a range of $2.77 to $2.85, including a four per share benefit from the settlement of an income tax audit in the second quarter, from our previous guidance of $2.68 to $2.78."