Dollar General announces 2006 Q4 & fiscal results

27 Mar '07

2 min read

Dollar General Corporation reported net income of $137.9 million, or $0.44 per share, for the year ended February 2, 2007 (fiscal 2006) compared to net income of $350.2 million, or $1.08 per share, for the year ended February 3, 2006 (fiscal 2005).

For the fourth quarter of fiscal 2006, the Company reported net income of $50.1 million, or $0.16 per share, compared to $145.3 million, or $0.46 per share, for the fourth quarter of fiscal 2005.

As a reminder, fiscal 2005 was a 53-week year, including 14 weeks in the fourth quarter. Except for the calculation of same-store sales, all comparisons are based on a 52-week year and 13-week quarter in fiscal 2006 compared to a 53-week year and 14-week quarter in fiscal 2005. Calculations of quarterly and annual same-store sales are based on comparable weeks and therefore exclude the extra week in fiscal 2005.

Summary of Strategic Inventory and Real Estate Initiatives:
In November 2006, the Company announced significant strategic operating initiatives intended to improve its long-term financial and operating performance.

These initiatives primarily related to changes to its historical inventory management model which allowed for the carryover of inventory at the end of a season to the following year, referred to as a "packaway" strategy, and the planned closing of approximately 400 under-performing stores, in addition to those to be closed in the normal course of business, in fiscal 2007.

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