Driven by strength in consumables and seasonal products, Dollar General reported strong sales growth for the second quarter ended August 3.
Net sales increased 10.6% to $6.4 billion with same-store sales up 3.7%. Net income was $407 million, or diluted earnings per share of $1.52, compared to net income of $295 million, or diluted earnings per share of $1.08, in the comparable quarter the previous year.
“Our results this quarter were driven by contributions from our mature store base, as well as the robust performance of our new stores,” said Todd Vasos, Dollar General’s CEO.”We also continued to invest in our strategic initiatives and made meaningful progress advancing against our goals.”
For the first half of 2018, net sales increased 9.8% to $12.6 billion. Company officials said the growth was attributed to new stores and comparable store growth of 2.9%. Net income for the first half was $772 million, or diluted earnings per share of $2.88, compared with net income of $574 million, or diluted earnings per share of $2.09, in the first half of 2017.
The company has updated it guidance for the remainder of the current fiscal year with sales growth expected to be between 9% and 9.3%. Same-store sales growth is expected to be in the mid-to-high 2% range.