Dollar General's net sales were up a healthy 11.4%, with sales open at least a year showing a 3% increase. The company produced an improved gross margin, which in its release it credited to a "higher average markup on beginning inventories that was partially offset by increased markdowns." Yes, that sounds like a contradiction, but the markdowns occurred after the products were in the stores for a while.
While I agree with the comments in our Foolish 99 Cents Off story (about Dollar General competitor 99 Cents Only
Dollar General has taken recent strides to improve the investment community's opinion of its prospects. Not only has it swept a potentially crippling accounting scandal under the rug, but it has also hired a new chief financial officer, formerly of Haggar
Even though the company has been going through some positive changes, the impact of these moves might not be material enough in the near term to push the shares forward. After all, there are just so many stickers and coloring books my wife can buy for our kids each quarter.
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Fool contributor Phil Wohl spent over 12 years on Wall Street and now concentrates his writing on more fictional characters. He has no stake in any firm mentioned above.