Domestics a bright spot for Dollar General in Q4, early 2012 as retailer makes category improvements
Cecile Corral -- Home Textiles Today, 3/22/2012 11:48:00 AM
Goodlettsville, Tenn. - Dollar General's home department is staying on path in its road to recovery into 2012 after undergoing shifts in the merchandise mix, packaging, presentation and price offering since the back half of last year.
During the discount chain's fourth quarter and fiscal 2011 earnings call today, chairman and ceo Rick Dreiling called the recent performance of the retailer's domestics business "encouraging." Shoppers are continuing to respond favorably to Dollar General's improvements in product quality and assortment in bedding and bath and other home categories.
"We've been focused on improving the quality and meeting customers' needs," he said. "Areas like bed and bath, which had been slow for some time, have been making a comeback since later last year, and the trend is ongoing in this New Year."
He later added that fourth quarter comps for home, including bedding, bath and other domestic categories, "exceeded overall comp percentages in the quarter."
Dollar General Corporation today reported record sales, operating profit and net income for its fiscal 2011 fourth quarter (14 weeks) and full year (53 weeks) ended February 3, 2012.
"For Dollar General, 2011 was another exceptional year," Dreiling said. "We executed on our operating priorities and delivered strong financial performance, while, at the same time, we were able to make significant investments which, I believe, will enable us to continue to achieve outstanding results."
"The strategies and investments we have put in place over the last four years have helped us capture the market share, customer loyalty and operating efficiencies that are driving our results. I believe those strategies and investments, along with the ones we have planned for 2012, will continue to serve us well. In fact, sales for the year are off to a strong start. We are expecting another year of profitable growth, including fiscal 2012 estimates of total sales growth of 10 to 11 percent on a comparable 52-week basis, same-store sales growth of 3 to 5 percent, and adjusted EPS of $2.65 to $2.75."
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