Dollar General to add 975 stores

While some retailers are scaling back on bricks-and-mortar stores, Goodlettsville, Tenn.-based Dollar General is planning on opening 975 new stores during the fiscal 2019 year.

The company said it also plans on remodeling 1,000 locations and relocating 100 stores this fiscal year. The announcements came during the company’s first-quarter financial report last week, where it revealed that its numbers topped Wall Street estimates for earnings per share and net sales.

“Our team continued to make great progress on our strategic initiatives this quarter, while remaining focused on our four operating priorities,” said Todd Vasos, Dollar General’s CEO. “This hard work and focus led to strong top- and bottom-line growth, and I’m very proud of our achievements. Looking forward, we have a wide variety of initiatives and projects that we believe can help extend our growth trajectory over both the near and longer term. During 2019, we will enter our 80th year of serving others, and we remain dedicated to bringing innovation to our retail channel and delivering on our commitment of value and convenience to our customers. We are excited about our future and believe we are creating long-term value for our shareholders.”

Net sales increased 8% to $6.6 billion in the first quarter, up 8% from $6.1 billion in the first quarter of 2018. The net sales increase beat analyst consensus of $6.5 billion and included positive sales contributions from new stores and 3.8% growth in same-store sales, modestly offset by the impact of store closures, according to the company.

Net income totaled $385 million, up 5% from $364.8 million the prior year quarter. Earnings per share were $1.48, a 9% increase from $1.36 a year earlier and beating the consensus estimate of $1.39 per share.