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Average ticket size up for 26th quarter at Dollar General
01 Sep '14
2 min read
“Dollar General's second quarter sales trends improved over the first quarter as we grew both customer traffic and average ticket for the 26th consecutive quarter," said Rick Dreiling, Dollar General's CEO.
He also reiterated Dollar General’s commitment to acquire Family Dollar by saying, “We remain firmly committed to the acquisition. The financial benefits of our offer to Family Dollar shareholders are indisputable and potential antitrust issues are manageable and our proposal is both superior and achievable."
Meanwhile, for the second fiscal quarter ending August 2, 2014, Dollar General posted net income of $251 million, or $0.83 per diluted share compared to net income of $245 million, or $0.75 per diluted share, in the second fiscal quarter of 2013.
Net sales rose 7.5 percent to $4.72 billion in the second quarter of 2014 vis-a-vis $4.39 billion from a year ago quarter. The retailer said same-store sales grew 2.1 percent, with increases in both customer traffic and average transaction value.
“The remainder of the sales increase was attributable to new stores, partially offset by sales from closed stores, with home products and apparel reporting solid same-store sales growth”, Dollar General added.
Gross profit, as a percentage of net sales touched 30.8 percent in the second quarter of 2014, down 53 basis points year-on-year. Dollar General attributed the majority of decline in gross profit rate to an increase in markdowns, primarily relating to increased promotional activities.
Selling, general and administrative expense ("SG&A") as a percentage of net sales reached 21.7 percent in the 2014 second quarter compared to 21.9 percent in the 2013 second quarter, a fall of 21 basis points.
Dollar General reported an effective income tax rate of 38.1 percent for the quarter under review versus a rate of 37.4 percent from a year earlier quarter.
"Dollar General's second quarter sales trends improved over the first quarter as we grew both customer traffic and average ticket for the 26th consecutive quarter and our second quarter same-store sales began very strong with a year over year increase in May of more than 3.5 percent”, Rick Dreiling explained
“However, this growth moderated as we moved through June and July given the competitive environment and a consumer who, although resilient in the face of economic uncertainty, remains cautious with her spending”, he informed.
He also reiterated Dollar General’s commitment to acquire Family Dollar by saying, “We remain firmly committed to the acquisition. The financial benefits of our offer to Family Dollar shareholders are indisputable and potential antitrust issues are manageable and our proposal is both superior and achievable."
Meanwhile, for the second fiscal quarter ending August 2, 2014, Dollar General posted net income of $251 million, or $0.83 per diluted share compared to net income of $245 million, or $0.75 per diluted share, in the second fiscal quarter of 2013.
Net sales rose 7.5 percent to $4.72 billion in the second quarter of 2014 vis-a-vis $4.39 billion from a year ago quarter. The retailer said same-store sales grew 2.1 percent, with increases in both customer traffic and average transaction value.
“The remainder of the sales increase was attributable to new stores, partially offset by sales from closed stores, with home products and apparel reporting solid same-store sales growth”, Dollar General added.
Gross profit, as a percentage of net sales touched 30.8 percent in the second quarter of 2014, down 53 basis points year-on-year. Dollar General attributed the majority of decline in gross profit rate to an increase in markdowns, primarily relating to increased promotional activities.
Selling, general and administrative expense ("SG&A") as a percentage of net sales reached 21.7 percent in the 2014 second quarter compared to 21.9 percent in the 2013 second quarter, a fall of 21 basis points.
Dollar General reported an effective income tax rate of 38.1 percent for the quarter under review versus a rate of 37.4 percent from a year earlier quarter.
"Dollar General's second quarter sales trends improved over the first quarter as we grew both customer traffic and average ticket for the 26th consecutive quarter and our second quarter same-store sales began very strong with a year over year increase in May of more than 3.5 percent”, Rick Dreiling explained
“However, this growth moderated as we moved through June and July given the competitive environment and a consumer who, although resilient in the face of economic uncertainty, remains cautious with her spending”, he informed.
Fibre2fashion News Desk - India
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