RTRS: UPDATE 1-Dollar General quarterly profit rises
Dollar General Corp [DG.UL] on Tuesday reported higher fourth-quarter profit after the discount retailer attracted shoppers looking for bargains on food, snacks and cleaning supplies.
Dollar General said net income for the 13 weeks that ended Jan. 30, rose to $81.85 million from $55.39 million a year ago.
Sales rose 11.2 percent to $2.85 billion.
Dollar General operates more than 8,400 stores in 35 states and sells discounted merchandise ranging from food to shampoo and clothing. In 2007 it was sold to private equity group Kohlberg Kravis Roberts & Co in $6.9 billion deal.
Budget retailers, including Wal-Mart Stores Inc (WMT.N), Family Dollar Stores Inc (FDO.N) and Dollar Tree Inc (DLTR.O), have been gaining momentum amid the prolonged economic downturn as consumers seek low prices.
For the current year, Dollar General forecast capital expenditures of $250 million to $275 million, and said it plans to open 450 new stores, and remodel or relocate approximately 400 stores.
