Dollar General has shared results for its fourth quarter and fiscal 2022, both showing increases in same-store sales and operating profits year-over-year.
For the latest quarter ended Feb. 3, 2023, net sales increased 17.9% compared to the final quarter of fiscal 2021, and same-store sales increased 5.7%. Operating profit in the quarter increased 17.1% to $933.2 million.
Gross profit as a percentage of net sales was 30.9% in the fourth quarter of 2022 compared to 31.2% in the fourth quarter of 2021. Net income was $659.1 million for the fourth quarter of 2022, an increase of 10.3% year-over-year.
“Our fourth-quarter sales results were strong, although below our expectations, and we are pleased with continued market share gains in both consumables and non-consumables, as well as continued growth with new and existing customers,” said Jeff Owen, Dollar General’s CEO. “We made significant progress advancing our operating priorities and strategic initiatives in fiscal 2022, including executing nearly 3,000 real estate projects, completing the rollout of our non-consumables initiative, nearly tripling our pOpshelf store count, more-than-doubling the size of our private tractor fleet, and opening three new distribution centers. As a result, we believe we are well-positioned to continue serving our customers with our unique combination of value and convenience in the communities we call home.”
For the full 53-week period, net sales increased 10.6% compared to fiscal 2021, and same-store sales increased 4.3%. Fiscal year operating profit increased 3.3% to $3.3 billion.
Gross profit as a percentage of net sales was 31.2% in fiscal year 2022, compared to 31.6% in fiscal year 2021. Net income was $2.4 billion for fiscal year 2022, an increase of 0.7% compared to $2.4 billion year-over-year.
For fiscal 2023, Dollar General said that it will continue to invest in its stores in hopes of continuing to gain market share amid inflation.
“Looking ahead, we are excited about our plans for fiscal 2023, which include continued investment in our strategic initiatives and an incremental investment of approximately $100 million in our stores, primarily in incremental labor hours, as we look to build on our sales momentum and capture additional market share by further enhancing store standards and the in-store experience,” said Owen. “Building on the investments we made in 2022, and the substantial progress we have made in our supply chain, we believe this incremental investment will yield strong returns as we continue creating long-term sustainable growth and value for our shareholders.”
Dollar General operates over 19,140 stores across the U.S. and Mexico.