Dollar General announces 2006 Q4 & fiscal results

27 Mar '07

2 min read

During the fourth quarter of fiscal 2006, the Company sold over half of the targeted inventories and closed 128 of the stores identified in this process. The Company is pleased with the results of its efforts to date on these initiatives.

The Company's financial results were significantly impacted by these strategic initiatives in the fiscal 2006 third and fourth quarters. In connection with the accelerated implementation of its new inventory management strategies and to sell through merchandise in the closing stores, the Company incurred substantially higher markdowns on inventory.

While the Company believes these markdowns had a positive impact on sales, particularly in the seasonal, basic clothing and home products departments, they had a negative impact on its gross profit as a percent of sales in fiscal 2006. In total, the gross profit rate declined by 289 basis points to 25.8% in 2006 compared to 28.7% in 2005.

Click here to read more:

Dollar General Corporation

More Dollar General Corporation News... More Textiles News - United States Of America...