Dollar General Q4 Sales Grow
Fourth quarter net sales at Dollar General increased 4.5% as positive sales contributions from new stores and growth in same-store sales were partially offset by the impact of store closures.
For the quarter ended January 31, net sales were $10.3 billion, up from sales of $9.9 billion in the comparable quarter the previous year. Same-store sales increased 1.2% compared to the fourth quarter of 2023, reflecting an increase of 2.3% in average transaction amount and a decrease of 1.1% in customer traffic.
Net income in the quarter was $191.2 million, a decrease of 52.4% compared to net income of $401.8 million in the fourth quarter of fiscal 2023. Diluted earnings per share decreased 52.5% to $0.87 for the fourth quarter of fiscal 2024 compared to diluted earnings per share of $1.83 in the fourth quarter of fiscal 2023. The decrease reflects a negative impact of approximately $0.81 per share in the fourth quarter related to the company’s store portfolio optimization review.
“We were pleased with the underlying performance of the business in the fourth quarter, including improved execution and solid top-line results,” said Todd Vasos, Dollar General’s chief executive officer. “As we reflect on our full fiscal 2024 year, we believe our Back to Basics work is resonating with customers, as demonstrated by higher customer satisfaction scores and healthy market share gains.”
Fiscal 2024 net sales increased 5% to $40.6 billion compared to $38.7 billion in fiscal 2023. 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.
Same-store sales increased 1.4% compared to fiscal 2023, reflecting increases of 1.1% in customer traffic and 0.3% in average transaction amount. Same-store sales in fiscal 2024 included growth in the consumables category, partially offset by declines in each of home products, seasonal, and apparel.
The company reported net income of $1.1 billion for fiscal 2024, a decrease of 32.3% compared to $1.7 billion in fiscal 2023. Diluted earnings per share decreased 32.3% to $5.11 for fiscal 2024 compared to diluted earnings per share of $7.55 in fiscal year 2023. The decrease reflects a negative impact of approximately $0.81 per share in the fourth quarter related to the company’s store portfolio optimization review.
During the fourth quarter of fiscal 2024, the company initiated a store portfolio optimization review of its Dollar General and pOpshelf bannered stores, which involved identifying stores for closure or re-bannering based on an evaluation of individual store performance, expected future performance, and operating conditions, among other factors.
As a result of this review, the company plans to close 96 Dollar General stores and 45 pOpshelf stores and convert an additional six pOpshelf stores to Dollar General stores in the first quarter.
“As we look to build on the substantial progress we made on our Back to Basics work in fiscal 2024, we believe this review was appropriate to further strengthen the foundation of our business,” said Vasos. “While the number of closings represents less than 1% of our overall store base, we believe this decision better positions us to serve our customers and communities.”
For fiscal year 2025, Dollar General is forecasting net sales growth of between 3.4% and 4.4% with same-store sales growth of between 1.2% and 2.2%.
