Dollar General Corp. (NYSE:DG) shares moved up the price ladder on reporting financial results for its fiscal year 2020 second quarter ended July 31.
The discount store chain out of Goodlettsville, Tenn., said its net sales hiked 24.4%, while same-store sales increased 18.8%. Operating profit increased 80.5% to $1.0 billion.
Diluted Earnings Per Share increased 89.1% to $3.12. Moreover, cash flows from operations increased 157.2% to $2.9 billion. Plus, the company announced that $691 Million were returned to shareholders through Share Repurchases and Cash Dividend.
"I want to thank our associates for their exceptional work over the past several months as we continue to navigate this challenging and dynamic operating environment," said Todd Vasos, Dollar General’s chief executive officer.
The effective income tax rate in the second quarter of 2020 was 21.5% compared to 22.9% in the second quarter of 2019. This lower effective income tax rate was primarily due to increased tax benefits associated with share-based compensation, partially offset by a lower income tax rate benefit from federal income tax credits due to higher pre-tax earnings in the 2020 period compared to the 2019 period.
In addition, the tax rate in the 2020 period was lower than in the 2019 period due to increased income tax expense associated with state law changes that occurred in the 2019 period that did not reoccur in the 2020 period.
DG shares added 83 cents to $204.92.
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