Sales up 9.9% at Dollar General in Q4FY15
Net sales for the thirteen weeks ended January 30, 2015 at NYSE listed, Dollar General Corporation grew 9.9 per cent from a year earlier quarter.
In a press release, Dollar General said its net sales increased 9.9 per cent to $4.94 billion in the 2014 fourth quarter compared to $4.49 billion in the 2013 fourth quarter.
Same-store sales were up 4.9 per cent, resulting from increases in both customer traffic and average transaction amount.
The retailer’s net income for the 2014 fourth quarter totaled to $355 million, or diluted earnings per share of $1.17 as against $322 million $1.01 in the quarter from the previous fiscal.
Its gross profit, as a percentage of sales reached 31.7 per cent in the 2014 fourth quarter from 31.9 per cent in the 2013 fourth quarter, a decrease of 23 basis points.
“The gross profit rate decrease was impacted by increased sales of lower margin consumables, including tobacco products and perishables products,” Dollar General said.
The slowdown of receipts of higher margin inventory as a result of the longshoreman labour dispute on the West Coast had an estimated $8.5 million impact or $0.02 per diluted share on gross profit for the quarter.
The Company recorded a LIFO provision of approximately $1.1 million in the 2014 fourth quarter compared to a LIFO benefit of $4.5 million in the 2013 fourth quarter.
Selling, general and administrative expenses ("SG&A") were $999 million, or 20.2 per cent of sales in the reporting quarter as against $897 million, or 20.0 per cent of sales in the 2013 fourth quarter.
“This increase was primarily due to significantly higher incentive compensation expense, increases in rent, as well as repairs and maintenance,” the retailer explained.
The 2014 period included expenses of $6.1 million related to the attempted acquisition of Family Dollar Stores, Inc.
These items were offset by convenience fees charged to customers for cash back on debit card transactions, a reduction in workers' compensation and general liability expenses.
The effective income tax rate in the 2014 fourth quarter was 34.8 per cent compared to 37.5 percent in the 2013 fourth quarter.
The effective tax rate benefited by approximately $9.0 million or $0.03 per share, from the retroactive reenactment of the Work Opportunity Tax Credit. (AR)
Fibre2fashion News Desk - India