Sector: Consumer Staples|Industry: Discount Stores|Market Cap: $16.42B|Employees: 185.8K
Dollar General is the largest discount retailer in the United States by store count, operating over 20,000 stores across 48 US states and Mexico. The company offers a broad selection of merchandise, including consumable items, seasonal items, home products, and apparel, at everyday low prices, leveraging both national brands and its own private labels. Dollar General's competitive advantage lies in its convenient small-box store format and low-cost operating structure, allowing it to serve both small and large markets.
Net sales reached $10.18 billion, up from $9.69 billion in the prior year. This growth was primarily fueled by new store openings and a 1.3% increase in same-store sales, indicating successful expansion and customer engagement.
Gross profit margin decreased by 18 basis points to 28.8%, primarily due to increased markdowns and damages, as well as a higher proportion of sales coming from the lower-margin consumables category.
Operating profit decreased to $323.8 million from $433.5 million in the prior year, driven by an increase in SG&A expenses as a percentage of net sales, primarily due to hurricane-related costs, higher retail labor, and depreciation and amortization.