|
 |
Mar-24-2009Dollar General sales soar in recession(topic overview)
CONTENTS:
SOURCES
FIND OUT MORE ON THIS SUBJECT
Quarterly sales rose 11.2 percent to $2.85 billion. The retailer also said that sales at its stores open at least a year, or same-store sales, rose 15.1 percent in February, and the difficult environment is helping to draw shoppers to its stores. "The economy is giving us a lot of trial with a lot of people who haven't experienced Dollar General in a year or two or maybe never, and they're coming in and seeing the improvements that we're making," Rick Dreiling, chief executive officer, said on a conference call. "Even though the economy is going to turn around eventually I think it's safe to say that there's going to be a new consumerism and that saving money is going to be fashionable for a very long period of time." [1] Discount retailer Dollar General Corp. said Tuesday its fourth-quarter profit rose 48 percent on a rise in sales and cost cuts. Dollar General and its competitors, such as Family Dollar Stores, have benefited as consumers watch every dollar they spend and seek out cheaper goods.[2] NEW YORK, March 24 (Reuters) - Dollar General Corp on Tuesday reported higher fourth-quarter profit after the discount retailer attracted shoppers looking for bargains on food, snacks and cleaning supplies. Dollar General, which sells most of its merchandise for $10 or less, said net income for the 13 weeks that ended Jan. 30, rose to $81.85 million from $55.39 million a year ago.[1]
Dollar General operates more than 8,400 stores in 35 states and sells discounted merchandise ranging from food to shampoo and clothing. In 2007, as the retailer was trying to restructure its business to boost profits, it was sold to private equity group Kohlberg Kravis Roberts & Co in $6.9 billion deal.[1] "We grew sales, expanded gross profit and reduced our SG&A; rate by successfully implementing programs to improve our store operations and merchandising efforts. Importantly, we were able to achieve these improvements despite the increasingly difficult economic conditions." During the quarter, Dollar General also bought back about $44 million of its senior debt, which resulted in a $3.8 million gain.[3] For the full year, Dollar General reported profit of $108.2 million, compared to a loss of $4.8 million in the prior year.[2]
Dollar General earned $81.9 million in its fiscal fourth quarter, up from $55.4 million in late 2007.[3]
Dollar General Corporation plans to report its financial results for the fourth quarter and fiscal year ended January 30, 2009, on Tuesday, March 24, 2009.[4]
As the recession puts a crimp in household budgets, discount retailers, including Dollar General, Wal-Mart Stores Inc ( WMT.N ), Family Dollar Stores Inc ( FDO.N ) and Dollar Tree Inc ( DLTR.O ), have been gaining momentum. That is also leading to increased competition as retailers fight to win business from newly frugal shoppers.[1] Dollar General is the largest discount retailer in the United States by number of stores with more than 8,400 neighborhood stores located in 35 states.[4]
Save Money. Every Day.'' by offering quality private label and national branded items that are frequently used and replenished such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at everyday low prices in convenient neighborhood stores. Dollar General is among the largest retailers of top-quality products made by America'''s most trusted manufacturers such as Procter & Gamble, Kimberly Clark, Unilever, Kellogg'''s, General Mills, Nabisco, and Fruit of the Loom.[4]
Dollar General was bought in July 2007 by an investment group that included affiliates of Kohlberg Kravis Roberts & Co., Goldman Sachs Group, Citi Private Equity and others.[2]
Dollar General Corp., owned by private-equity firm Kohlberg Kravis Roberts & Co., on Tuesday reported that fiscal-fourth-quarter net income climbed 48% amid increased traffic and transaction size.[5]
Same-store sales rose 9.4 percent during the quarter as customer traffic and the average transaction amount rose. Same-store sales, or sales at stores open at least a year, are considered a key measurement of retailer health because they evaluate results at established stores rather than newly opened ones. [2] Sales at the Goodlettsville-based retailer rose 11 percent to more than $2.8 billion. The company, which has been sharpening its operations since going private in mid-2007, grew it operating margin to 7.8 percent from 7.3 percent during the quarter.[3] Sales gains recorded in the period also continued into February, the discount retailer said. The company, which was acquired by KKR in 2007, said its net income rose to $81.9 million from $55.4 million for the quarter ended Jan. 30.[5]
The private company earned $81.9 million in the quarter that ended Jan. 31, compared to profit of $55.4 million a year earlier.[2]
Revenue rose 11 percent to $2.85 billion in the quarter from $2.56 billion.[2] Same-store sales rose about percent while the company held the line on operating costs.[3]
SOURCES
1. UPDATE 2-Dollar General posts higher 4th-qtr profit | Markets | Bonds News | Reuters
2. Dollar General Q4 profit rises 48 percent - Forbes.com
3. Dollar General widens margins in Q4 | Market-movers | NashvillePost.com: Nashville Business News + Nashville Political News
4. Dollar General Corporation to Announce Fourth Quarter and Fiscal Year 2008 Financial Results on March 24
5. Dollar General, Profiting on the Recession, Pays Off for KKR - WSJ.com
GENERATE A MULTI-SOURCE SUMMARY ON ANY SUBJECT
Enter your search query below. WAIT 10-20 sec for the new window to open.
Get more info on Dollar General sales soar in recession by using the iResearch Reporter tool from Power Text Solutions.
 |
|  |
|
