discount retailer with dollar general corporation reported diluted earnings per share ("eps") of $0.20 for the quarter ended april 29, 2005, compared with eps of $0.20 for the prior year quarter ended april 30, 2004. net income for the first quarter of 2005 was $64.9 million, 4.3 percent below net income of $67.8 million for the first quarter of fiscal 2004.
net sales during the first quarter of 2005 increased 13.2 percent to $1.98 billion from $1.75 billion in the first quarter of 2004. the increase is primarily a result of net new stores and a same-store sales increase of 4.9 percent.
gross profit during the current year period was $563.3 million, or 28.5 percent of sales, versus $512.3 million, or 29.3 percent of sales, during the comparable period in the prior year. the decrease in the gross profit rate is primarily attributable to lower sales, as a percent of total sales, in the company's seasonal, home products and basic clothing categories, which have higher than average markups. higher transportation costs also contributed to the decline in the gross profit rate. these factors were partially offset by the company's higher average markups on beginning inventories.
selling, general and administrative expenses ("sg&a") during the current year period were $456.4 million, or 23.1 percent of sales, versus $397.7 million, or 22.8 percent of sales, during the comparable period in the prior year. the increase in sg&a as a percent to sales is primarily the result of increases in store occupancy costs, including rent and utility expenses, repairs and maintenance, and fees associated with increased customer usage of debit cards. these increases were partially offset by decreases from the 2004 quarter in consulting fees relating to the company's ezstore project and fees associated with sarbanes-oxley compliance efforts which did not recur in the 2005 quarter.
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