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Dollar General Reports July Same-Store Sales up 4.6%

Thursday August 3, 8:30 am ET
Announces Second Quarter Conference Call

GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Aug. 3, 2006--Dollar General Corporation (NYSE: DG - News) today reported total retail sales for the July four-week period ended July 28, 2006, equaled $680.5 million compared with $617.0 million last year, an increase of 10.3 percent. For the July period, same-store sales increased 4.6 percent compared to an increase of 3.4 percent in the four-week period ended July 29, 2005. The sales increase for the period was attributable to strong sales increases in the categories of food, paper products, home cleaning products, summer events, sundries, and pet supplies. Same-store sales decreased in the categories of home products and apparel.

The Company's gross margin for the second fiscal quarter of 2006 has been negatively impacted by the mix of sales which has been more heavily skewed toward lower margin highly consumables than anticipated. Sales in the higher margin home and apparel departments have been below the Company's projections for the quarter. The Company's fiscal quarter ends on Friday, August 4, 2006.

Dollar General is scheduled to announce earnings for the second quarter on Thursday, August 31, 2006. The Company will host a conference call on Thursday, August 31, 2006, at 9:00 a.m. CDT/10:00 a.m. EDT to discuss the quarter's financial results.

Use the link to read the full press release. It looks like overall sales are improving, but that Gross Margins may end up weaker. I'm not sure how all this will shake out but I guess the market action today will be a signal of what "the market" thinks will be happening to profits...

JT :-)
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