Dollar General releases preliminary Q4, fiscal year 2022 results
Lower-than-anticipated sales and higher-than-anticipated inventory damages, both of which were negatively impacted, to varying degrees, by winter storm Elliott during the fourth quarter brought lower-than-expected results for Dollar General as it released certain preliminary financial results for the quarter and fiscal year ended Feb. 3.
The company intends to provide its full financial results for the fiscal 2022 fourth quarter and full year on March 16, 2023.
Dollar General expects to report financial results for the fiscal 2022 fourth quarter and full year below the expectations provided on its conference call on Dec. 1, 2022. Despite continued market share gains in sales of both consumable and non-consumable products, same-store sales for the fourth quarter increased by 5.7%, compared to the company’s previous expectation of approximately 6 to 7%. The company now expects diluted earnings per share for the fourth quarter in the range of $2.91 to $2.96, compared to its previous expectation in the range of $3.15 to $3.30.
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For the fiscal year, Dollar General's same-store sales increased by 4.3%, compared to the company’s previous expectation of being toward the upper end of a range of 4 to 4.5%, and the company expects diluted earnings per share growth in the range of approximately 4.5 to 5.0%, compared to its previous expectation of approximately 7 to 8%.
The company said it believes the lower-than-expected results are primarily attributable to lower-than-anticipated sales and higher-than-anticipated inventory damages, both of which were negatively impacted, to varying degrees, by winter storm Elliott during the fourth quarter. While both November and January same-store sales results were within the company’s expected guidance range for the fourth quarter at 6.7% and 6.5%, respectively, December’s same-store sales results were lower than anticipated at 4.5%, believed to be primarily a result of the storm.
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While Dollar General will discuss its plans and expectations for the fiscal year ending Feb. 2, 2024 (“fiscal 2023”) in more detail on its upcoming call, it currently expects the following for fiscal 2023:
- Same-store sales growth in the range of 3 to 3.5% and;
- Diluted earnings per share growth in the range of approximately 4 to 6%, including anticipated negative impacts of the following: approximately three percentage points due to higher interest expense in fiscal 2023, and approximately four percentage points due to lapping the fiscal 2022 53rd week.