In the coronavirus-roiled market, Dollar General has been able to gain momentum, with second quarter net sales gaining 24.4% and net income up 84.6%.
The company posted net income of $787.6 million, or $3.12 per diluted share, versus $426.6 million, or $1.65 per diluted share, in the quarter a year previous. Net income adjusted for one-time charges was $787.6 million, or $3.12 per diluted share, versus $450.7 million, or $1.74 per diluted share, in the year-past period.
Dollar General exceeded an analyst consensus second quarter estimate of $2.47 published by MarketBeat.
Comparable sales increased 18.8% in the quarter year over year, driven by an increase in average transaction amount, partially offset by a decline in customer traffic. Comps gained in consumables, seasonal, home products and apparel categories, with the largest percentage increase in the home products category, Dollar General stated.
Net sales were $8.68 billion versus $6.98 billion in the quarter a year earlier. Operating profit was $1.04 billion versus $577.8 million in the year-before quarter.
Todd Vasos, Dollar General CEO, said, “As the neighborhood general store for thousands of communities across the country, we appreciate the importance of our role in providing customers with affordable, convenient, and close-to-home access to everyday essentials. As a result of the team’s strong execution and tireless commitment to serving our customers, we are pleased to report strong second-quarter financial results. We continue to operate from a position of strength and are excited to announce the acceleration of several key strategic initiatives, including the rollout of DG Pickup, DG Fresh, and our non-consumables initiative, as well as an increase in our expected number of real estate projects for fiscal 2020. Our robust portfolio of initiatives, coupled with our expansive real estate footprint of nearly 17,000 store locations, positions us well to continue delivering value and convenience for our customers, while driving sustainable long-term growth and value for our shareholders.”