DG SSS up 6.3%

by Ian L. Cooper

We are continuing to hold our Dollar General (DG:NYSE) play. Here’s the idea: Would you rather spend US$10 for a product, or US$1? We don’t see any reason to toss out hard-earned money, especially in an economy with zero direction. Just this past week, DG posted total retail sales of US$454.7 million for the four-week period ended August. Take note of this. That figure is a 15.6% improvement over the US$393.3 million posted last year. Not too shabby.

Same-store sales for the August period were up 6.3%. Unfortunately, that number is down from the 6.7% upsurge in August 2001. But customer transactions were up 8%. For the 30-week period ended August 30, DG’s total retail sales were up 16.9% to US$3.3 billion from the US$2.82 billion recorded just one year ago. SSS for the 30-week period were up 7.9%.

But wait, there’s more. For the five-week period ending on October 4, the company expects total sales to rise 14 to 16%. SSS are expected to climb five to 7%. Continue holding DG for the long haul.

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