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Shares of Dollar General (NYSE:DG) are moving lower in premarket after the company delivered weaker-than-expected Q4 results.
Dollar General reported EPS of $2.96 on revenue of $10.2 billion, missing the consensus for earnings of $2.99 per share on revenue of $10.25B. Net sales rose 18% year-over-year (YoY) while comparable sales increased by 5.7%, a bit softer than the expected 5.9% increase.
“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 chief executive officer.
For FY24, net sales and EPS growth are seen at 5.5-6% and 4-6%, respectively. Same-store sales are expected to increase 3-3.5%, modestly below the consensus of +3.4%.
“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,” Owen added.
DG shares are down 11.2% year-to-date (YTD).
