Dollar General’s Q4 net sales surge 13.7% to $6bn
Dollar General has reported a 13.7% increase in net sales revenue to $6bn for the fiscal 2016 fourth quarter ended 3 February 2017, from $5.3bn compared to the year-ago quarter.
The American discount retailer saw its same-store sales in Q4 move up by 1.0%, driven by positive results in the consumables and home products categories.
Dollar General has attributed the increase in net sales revenue to the sales coming from its newly opened stores which were modestly offset by sales from closed stores.
The retailer’s gross profit, in the fourth quarter surged 31.82% to $1.9bn, in comparison to the year-ago quarter’s $1.69bn.
For the full year 2016, Dollar General reported its net sales to increase 7.9% to $22bn compared to $20.4bn net sales earned in 2015. Its same-store sales in FY16 increased by 0.9%.
Gross profit for the full year 2016 was up by 30.8% to $6.8bn from the gross profit of $6.3bn reported in FY15.
Dollar General CEO Todd Vasos said: “We are pleased with our fourth quarter 2016 financial results, and believe that during the quarter many of our initiatives continued to gain traction.
For the year, we effectively managed through what proved to be a challenging retail environment to deliver same-store sales growth of 0.9% and diluted earnings per share growth of 12%, while returning nearly $1.3bn to shareholders through the combination of share repurchases and dividends.”
Vasos added that the company is on track to open nearly 1,000 new stores this year. It will also make considerable investments, especially on compensating and training store managers.
Dollar General has also reported that its cash from operations increased 15% to $1.6bn in FY16 compared to $1.4bn reported in FY15.
The company’s board of directors has increased the quarterly cash dividend of $0.26 per share.
Image: Dollar General reported 13.7% increase in Q4 2016 net sales. Photo: courtesy of Dollar General Corporation.