Dollar General Corporation (NYSE: DG) reported quarterly earnings before Thursday’s opening bell.
Net sales increased 9.0% to $6.1 billion in the first quarter of 2018 compared to $5.6 billion in the first quarter of 2017. Same-store sales increased 2.1% from the first quarter of 2017 due to an increase in average transaction amount, partially offset by a decline in customer traffic.
Gross profit as a percentage of net sales was 30.5% in the first quarter of 2018 compared to 30.3% in the first quarter of 2017, an increase of 17 basis points. The first quarter of 2018 gross profit rate increase was primarily attributable to higher initial markups on inventory purchases and an improved rate of inventory shrink.
The Company reported net income of $365 million, or diluted EPS of $1.36, for the first quarter of 2018 compared to net income of $279 million, or diluted EPS of $1.02, in the first quarter of 2017, an increase in diluted EPS of 33.3%.
Dollar General CEO Todd Vasos said, "We are proud of our execution and solid performance, particularly given the significant weather-related headwind we faced during the first quarter. We are pleased with the start of the second quarter, and based on our year-to-date performance and outlook for the remainder of 2018, we are reiterating our full-year guidance.
"We offer a unique value and convenience proposition that continues to resonate with customers, and we are excited about the initiatives we have in place."
Dollar General shares plummeted $7.51, or 7.8%, to $89.01 in mid-morning trading on Thursday.
Related Stories
