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Dollar General sees traffic pick up in Q2

Goodlettsville, Tenn. - Dollar General Corporation beat its own record in sales and net income in its second quarter, when most of its categories-including home - posted strong or improved sales, driving up customer traffic and average transaction.

"I want to emphasize the acceleration of our traffic on top of already strong traffic trends in the first quarter," said Rick Dreiling, Dollar General's chairman and ceo, during the 10,866-unit discount chain's earnings call this morning. "I was also pleased with our overall sales growth across all non-consumable categories."

The company's net income for the quarter, ended Aug. 2, increased 15% to $245 million, with earnings per share up 17% to 75 cents.

Sales jumped 11.3% to $4.39 billion, and same-store sales grew 5.1%, aided by increases in both customer traffic and average transaction value.

By merchandise segment, consumables continued to experience sales increases at a faster pace rate than non-consumables in the quarter. Seasonal and apparel categories both of which showed solid comp increases, and the home products category also improved in the 13 weeks, continuing its trend from the first quarter.

Year to date, net income rose 8.9% to $466 million, or $1.42 per diluted share. Sales increased 9.9% to $8.63 billion, and same-store sales were up 3.8%.

To support growth, the company is ramping up its new store openings and rolling out new store formats and layouts through 2014 to better present some more discretionary areas, like seasonal and apparel.

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