Store Traffic Growth Boosts Dollar General Q1 Results
Dollar General reported a rise in first quarter net sales as officials with the retailer cited growth in store traffic as the key driver.
For the 13 weeks ended May 3, net sales increased 6.1% to $9.9 billion. The increase was primarily driven by positive sales contributions from new stores and a 2.4% increase in same-store sales, partially offset by the impact of store closures. Same-store sales in the quarter included growth in the consumables category, partially offset by declines in home products, seasonal, and apparel.
Net income in the quarter was $363.3, a decrease of 29.4% compared to $514.4 million in the first quarter of 2023. Diluted EPS decreased 29.5% to $1.65 for the first quarter of 2024 compared to diluted EPS of $2.34 in the first quarter of 2023.
“We are pleased with our start to 2024, including top and bottom-line results that exceeded our expectations in the first quarter,” said Todd Vasos, Dollar General’s chief executive officer. “These results were driven by strong customer traffic growth and market share gains during the quarter, which we believe is a testament to the relevance of our unique combination of value and convenience, as well as improved execution across our organization.”
Dollar General’s first quarter capital expenditures were $342 million, including approximately $132 million for improvements, upgrades, remodels and relocations of existing stores; $117 million related to store facilities, primarily for leasehold improvements, fixtures, and equipment in new stores; $78 million for distribution and transportation-related projects; and $13 million for information systems upgrades and technology-related projects.
During the first quarter of 2024, the Company opened 197 new stores, remodeled 463 stores, and relocated 21.
