World Business

Dollar General Produces Higher Q4 Sales Growth – HomeWorld Business


Dollar General strengthened its foundation during the fourth quarter and fiscal year, producing strong sales growth.

Net sales increased 8.5% to $6.6 billion in the fourth quarter of 2018 compared to $6.1 billion in the fourth quarter of 2017. The net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures. Same-store sales increased 4% compared with the fourth quarter of 2017, driven by increases in average transaction amount and customer traffic. Same-store sales in the fourth quarter of 2018 included growth in the consumables, seasonal, and home categories, partially offset by declines in the apparel category.

The company reported net income of $483 million for the fourth quarter of 2018 compared to $712 million in the fourth quarter of 2017. Diluted EPS decreased 30% to $1.84 for the fourth quarter of 2018 compared to diluted EPS of $2.63 in the fourth quarter of 2017.

Fiscal year 2018 net sales increased 9.2% to $25.6 billion compared to $23.5 billion in fiscal year 2017. The net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures. Same-store sales increased 3.2% compared with fiscal year 2017, driven by an increase in average transaction amount. Growth in same-store sales for fiscal year 2018 also included growth in the consumables, seasonal, and home categories, partially offset by declines in the apparel category. Customer traffic was flat.

The company reported net income of $1.6 billion for fiscal year 2018 compared to $1.5 billion for fiscal year 2017. Diluted EPS grew 6% to $5.97 for fiscal year 2018 compared to diluted EPS of $5.63 in fiscal year 2017.

“2018 was a great year for Dollar General and we entered 2019 with a strong foundation for success,” said Todd Vasos, Dollar General’s CEO. “During the fourth quarter we delivered strong same-store sales growth, driven by performance in both consumable and non-consumable product sales, which resulted in our highest two-year same-store sales stack in 21 quarters. We also continued to make progress executing our digital and non-consumables strategic initiatives, while staying true to our ongoing operating priorities. Looking ahead to 2019, we are excited to introduce two new transformational strategic initiatives, DG Fresh and Fast Track. DG Fresh, which is designed to enable self-distribution of fresh and frozen products, is already up and running in approximately 300 stores and Fast Track, which we believe will enhance in-store labor productivity and customer convenience, is launching soon. Our team is very excited about the future, and I believe we remain well-positioned to continue delivering best-in-class value and convenience to our customers and creating long-term shareholder value.”

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