An increase in customer traffic combined with growth in consumable product sales were key drivers in a strong second quarter at Dollar General.
For the three month period ending July 29, net sales were $9.4 billion, a 9% increase from the comparable quarter the previous year. Same-store sales increased 4.6%. Diluted earnings per share (EPS) increased 10.8% to $2.98 with net income up 6.4%.
Same-store sales in the second quarter included growth in the consumables category, partially offset by declines in apparel, seasonal, and home products.
“During the quarter, we also made significant progress advancing our operating priorities and strategic initiatives, further enhancing our unique value and convenience proposition,” said Todd Vasos, CEO of Dollar General. “Looking ahead, we are confident that our strategic actions have positioned us well for continued success, while supporting long-term shareholder value creation.”
Following its strong second quarter, Dollar General is updating sales guidance for the remainder of its fiscal year. The retailer expects net sales to grow 11%, up from previous sales guidance of 10% to 10.5%. Same store sales are expected to grow between 4% and 4.5%, compared to previous guidance of 3% to 3.5%