Celebrating its 80th year in business, Dollar General started out strong in the first quarter with both sales and earnings growth.
The company posted net income of $385 million, or $1.48 per diluted share, for the first quarter ended May 3 versus $364.9 million, or $1.36 per diluted share, in the period a year earlier. Dollar General beat a Zacks Investment Research analyst consensus estimate of $1.39 per diluted share.
Comparable sales advanced 3.8% in the quarter year over year, with increases in both average transaction amount and customer traffic. Gains in the home, consumables and seasonal product segments helped buoy comps in the period, partially offset by declines in apparel, the company noted.
Net sales were $6.62 billion versus $6.11 billion in the quarter a year prior. Operating profit was $512.2 million compared to $490.2 million, in the year-previous period.
“Our team continued to make great progress on our strategic initiatives this quarter, while remaining focused on our four operating priorities,” said Todd Vasos, Dollar General CEO. “This hard work and focus led to strong top- and bottom-line growth, and I’m very proud of our achievements. Looking forward, we have a wide variety of initiatives and projects that we believe can help extend our growth trajectory over both the near and longer term. During 2019, we will enter our 80th year of serving others, and we remain dedicated to bringing innovation to our retail channel and delivering on our commitment of value and convenience to our customers. We are excited about our future and believe we are creating long-term value for our shareholders.”