Dollar General Corp. (NYSE: DG) today reported record sales,
operating profit and net income for its fiscal 2012 fourth quarter (13
weeks) and full year (52 weeks) ended Feb. 1, 2013.
"Dollar General had yet another outstanding year in 2012 including exceptionally strong fourth quarter results,"Rick Dreiling, chairman and CEO, said in a statement. "We grew our market share and invested strategically to continue to win with our customers. These results demonstrate the strength of our business strategy, and we believe we are very well-positioned for future growth."
He added that the company is forecasting a sales increase of 10 to 12 percent for 2013, same-store sales growth of 4 to 6 percent and adjusted EPS of $3.15 to $3.30. "We remain committed to delivering long-term value for our shareholders through increased earnings and return of cash through ongoing share repurchases," he said.
Fiscal Fourth Quarter 2012 Highlights
Net sales increased 0.5 percent to $4.21 billion in the 2012 fourth quarter compared to $4.19 billion in the 2011 fourth quarter. Excluding sales for the week ending February 3, 2012 ("the 2011 53rd week") of $289 million, net sales increased 8.0 percent. Same-store sales, based on the comparable 13-week periods ended February 1, 2013 and February 3, 2012, increased 3.0 percent, resulting from increases in both customer traffic and average transaction amount. Same-store sales increases were primarily driven by consumables.
The Company's gross profit, as a percentage of sales, was 32.5 percent in the 2012 fourth quarter compared to 32.2 percent in the 2011 quarter, an increase of 34 basis points. Factors contributing to the improvement included a significant reduction in the adjustment to the Company's LIFO reserve in addition to improved transportation efficiencies and higher markups, partially offset by an increase in the mix of consumables, which generally have lower markups than non-consumables, and higher markdowns. Cost of goods sold included charges to increase the Company's LIFO reserve of $0.2 million in the 2012 fourth quarter compared to $22.3 million in the 2011 fourth quarter.
Selling, general and administrative expenses ("SG&A") were $845 million, or 20.1 percent of sales, in the 2012 13-week fourth quarter, compared to $838 million, or 20.0 percent of sales, in the 2011 14-week quarter. Excluding the acceleration of equity-based compensation and other expenses resulting from secondary offerings of the Company's common stock of $10.3 million in the 2011 quarter, SG&A, as a percentage of sales, increased by 31 basis points. Costs that increased at a rate higher than the increase in sales include rent expense, depreciation expense, primarily related to store fixtures and equipment, and fees associated with the increased use of debit cards. Retail labor expense, as a percentage of sales, decreased due to efficiencies driven by the Company's workforce management system and work simplification efforts. In the 2011 fourth quarter, SG&A was favorably impacted by increased sales, including the 2011 53rd week, among other factors.
Operating profit was $522 million, or 12.4 percent of sales, in the 2012 fourth quarter, compared to $508 million, or 12.1 percent of sales, in the 2011 fourth quarter. Excluding the acceleration of equity-based compensation and other secondary offering expenses, 2011 fourth quarter
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