Dollar General Q4 Revenue Dips, But Comps Up Slightly
Fourth quarter net sales at Dollar General were down more than 3% as store closures had a negative impact on revenue for the period ended February 2.
Net sales in the quarter were $9.9 billion, a decrease of 3.4% from the comparable quarter the previous year. The downward movement in sales was also negatively impacted by this year’s fourth quarter having one fewer week than the fourth quarter of 2022.
Net income in the quarter was $401.8 million, a decrease of 39% compared to $659.1 million in the fourth quarter of fiscal 2022. Diluted earnings per share decreased 38.2% to $1.83 for the fourth quarter of fiscal 2023 compared to diluted earnings per share of $2.96 in the fourth quarter of fiscal 2022.
Same-store sales increased 0.7% compared to the fourth quarter of fiscal 2022, driven by an increase in customer traffic, partially offset by a decrease in average transaction amount, company officials said. Same-store sales in the fourth quarter of fiscal 2023 included growth in the consumables category, partially offset by declines in each of the home products, seasonal, and apparel categories.
“With customer traffic growth and market share gains during the quarter, we believe our actions are resonating with customers as they turn to Dollar General for our unique combination of value and convenience,” said Todd Vasos, Dollar General’s chief executive officer. “We have made solid progress executing on our Back to Basics strategy, which we believe supported our improved operational performance during the quarter. While we are pleased with the operational improvement we have seen, we believe that significant opportunity remains, as we continue to focus on enhancing the way we support our teams and serve our customers.”
Fiscal 2023 net sales increased 2.2% to $38.7 billion compared to $37.8 billion in fiscal 2022, which included net sales for the 53rd week of $678.1 million. Company officials said the net sales increase was primarily driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures.
Full year net income was $1.7 billion, a decrease of 31.2% compared to $2.4 billion in fiscal 2022. Diluted earnings per share decreased 29.3% to $7.55 for fiscal 2023 compared to diluted EPS of $10.68 in fiscal year 2022.
Same-store sales increased 0.2% compared to fiscal 2022, driven by an increase in customer traffic, partially offset by a decline in average transaction amount. Same-store sales increased in the consumables category, and declined in the home products, seasonal and apparel categories.
For the 52-week fiscal year ending January 31, 2025, Dollar General is forecasting net sales growth in the range of between 6% and 6.7%, with same-store sales growth in the range of 2.0% and 2.7%.
The retailer is also reiterating its plans to execute approximately 2,385 real estate projects in fiscal year 2024, including approximately 800 new store openings, 1,500 remodels, and 85 store relocations.
