Dollar General reported a solid first quarter that saw the retailer claim market share gains in consumables and non-consumables.
In the quarter, net income was $363.3 million, or $1.65 per diluted share, versus $514.4 million, or $2.34 per diluted share, in the period a year previous.
An analyst consensus estimate from Yahoo Finance called for earnings per diluted share of $1.57 and revenues of $9.9 billion.
Comparable sales advanced 2.4%. Net sales were $9.91 billion versus $9.34 billion in the year-earlier quarter, the company stated.
An increase in customer traffic drove comps partially offset by a decrease in average transaction amount. First-quarter comps included growth in the consumables category partially offset by declines in the home products, seasonal, and apparel segments.
Positive sales contributions from new stores and growth in same-store sales, drove the overall sales increase, the company indicated, partially offset by store closure impact.
Operating profit was $546.1 million versus $740.9 million in the year-prior period.
In a conference call, Todd Vasos, Dollar General CEO, said the consumable product category saw market share growth in dollars and units while non-consumables saw market share growth in dollars. Traffic drove comp gains partially offset by lower average transaction.
Vasos added that the company continues pushing shrink reduction efforts, including a planogram that designed to reduce pilferage and the elimination of self checkouts.
“We are pleased with our start to 2024, including top and bottom-line results that exceeded our expectations in the first quarter,” Vasos said. “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 to improved execution across our organization.”
Vasos added, “We continue to make progress executing on our Back to Basics strategy, which we believe is resonating positively with our customers in the store. Looking ahead, we continue to focus on actions designed to enhance the way we support our teams and serve our customers, while creating sustainable long-term value for our shareholders.”
