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Dollar General Corp. shares rallied in the extended session Thursday after the company announced Todd Vasos will return as chief executive, effective immediately, and kept its sales forecast within analysts’ expectations.
Dollar General
DG,
shares rallied 7% after hours, following the announcement that Vasos, who previously served as CEO from June 2015 to November 2022, agreed to return as CEO “for the foreseeable future.”
Vasos will remain on the board, which he has been a member of since 2015, and succeeds Jeff Owen. Back in 2022, Vasos had announced he would retire, and then-Chief Operating Officer Owen took over as CEO.
“At this time the board has determined that a change in leadership is necessary to restore stability and confidence in the company moving forward,” Dollar General said in a statement.
Read: Dollar General gets its latest bearish view as HSBC says its least favorite of 7 retailers
The company narrowed its forecast sales growth to a range of 1.5% to 2.5%, compared a previous 1.3% to 3.3% range, and expects earnings of about $7.10 to $7.60 a share, compared with a prior forecast of $7.10 to $8.30 a share.
Analysts surveyed by FactSet expect earnings of $7.81 a share for the year and revenue of $38.73 billion for the year, or a 2.4% increase from a year ago.
As of Thursday’s close, Dollar General shares have dropped more than 57% over the past 12 months, while the S&P 500 index
SPX
has advanced more than 13% over that period.
