US value retailer Dollar General has made a “great start to the year” with an increase in first-quarter earnings.

For the three months to the end of April, net income increased to US$136m from $83m in the prior year.

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Sales increased 11.9% to $3.11bn. Same-store sales increased 6.7% in the 2010 quarter compared to 13.3% in the 2009 quarter, with customer traffic and average transaction amount contributing to the increase.

Sales were strongest in the consumables and seasonal categories.

First-quarter operating profit increased 29% to $290.7m.

“Dollar General’s first quarter performance marks a great start to the year. Our first quarter sales were ahead of our expectations,” said Rick Dreiling, chairman and CEO. “Our same-store sales growth of 6.7 percent for the quarter was on top of 13.3 percent growth in the first quarter of 2009.”

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