Dollar General records $97M profit
March 25, 2002,
Buoyed by strong fourth-quarter sales and sharply stronger margins, value retailer Dollar General Corp. recorded a strong fourth-quarter profit of $97.4 million, recovering from a year-ago loss of $32.2 million, when the company had to pony up $162 million in cash to settle litigation arising from accounting problems.
Unencumbered by the calendar problems that stunted growth at rival Family Dollar, Dollar General results included sales for the entire holiday period, including post-Thanksgiving sales.
Sales in the all-important Christmas quarter rose by 10.0 percent, to $1.6 billion from $1.4 billion last year. Same-store sales increased by 6.5 percent. Driving much of that top-line growth, Dollar General opened 79 new stores, closing 24 others, for a net gain of 55 units.
In a big lift to the bottom line, average gross margin widened sharply, climbing by 370 basis points, to 30.0 percent from 26.3 percent a year ago. But skewing the year-over-year comparison somewhat, last year's gross margin rate was hurt by a $21.5 million markdown.
Dollar General Corp.
|Qtr. 2/1/02 (x000)||2002||2001||% change|
a-Results in the 2001 fourth-quarter and 12-month periods include a $162 million charge stemming from the settlement of litigation, partially offset by income-tax benefits of $23.2 million during the year-ago fourth quarter.
|Oper. income (EBIT)||162,888||116,465||39.9|
|Per share (diluted)||0.29||(0.10)||—|
|Average gross margin||30.0%||26.3%||—|
|Oper. income (EBIT)||373,611||316,004||18.2|
|Per share (diluted)||0.62||0.21||195.2|
|Average gross margin||28.4%||27.5%||—|