Dollar General Q4 Revenue Misses Street Expectations

Dollar General Corp DG reported fourth-quarter FY22 sales growth of 17.9% Thursday ear-on-year to $10.2 billion, missing the analyst consensus estimate of $10.24 million.

Same-store sales increased 5.7% versus last year. Positive sales contributions from new stores and growth in same-store sales drove the growth.

The gross profit margin for the quarter decreased 30 basis points Y/Y to 30.9%. The operating margin was 9.1%, and operating income for the quarter rose 17.1% to $933.2 million.

The company held $381.6 million in cash and equivalents as of Feb. 3, 2023. 

EPS of $2.96 was inline with the analyst consensus.

As of Feb. 3, total merchandise inventories, at cost, were $6.8 billion compared to $5.6 billion as of Jan. 28, 2022. 

The total remaining share authorization for future repurchases was $1.4 billion at the end of fiscal year 2022.

On March 15, 2023, the company’s board declared an increased quarterly cash dividend of 59 cents per share on its common stock, payable on or before April 25, 2023 to shareholders of record on April 11. 

Outlook: Dollar General sees FY23 net sales growth of 5.5%-6%.

The company sees same-store sales growth of 3%-3.5%; Diluted EPS growth of 4%-6%.

The company expects share repurchases of about $500 million.

DG Price Action: DG shares are trading lower by 1.97% at $214.26 in premarket on the last check Thursday.