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Today, shares of Dollar General Corporation closed in US Dollar. The stock has fallen 11% year-to-date. The discount retailer is scheduled to report fourth quarter 2022 earnings results on Thursday, March 16 and has provided certain preliminary results in the past month. Here are some points to note before the upcoming report:
results
Analysts project revenue of $10.24 billion for Dollar General in Q4 2022, which would represent an 18% increase from the prior year period. In the third quarter of 2022, net sales increased 11% to $9.5 billion, driven by positive sales contributions from new stores and growth in same-store sales.
Same store sales
In February, Dollar General reported that despite continuing to gain market share in both consumable and non-consumable product sales, same-store sales for Q4 only rose 5.7% compared to company estimates. 6-7% growth.
The company believes the lower-than-expected results were primarily due to lower-than-anticipated sales and higher-than-anticipated inventory deterioration, both of which were impacted by Winter Storm Elliott in Q4. Although same-store sales were 6.7% and 6.5% for November and January, respectively, within the range of guidance expected for Q4, same-store sales in December were down 4.5%, believed to be mainly due to the storm.
Income
Dollar General now expects EPS between $2.91-2.96 in Q4 compared to the previous expectation of $3.15-3.30. This compares to EPS of $2.57 reported in Q4 2021. In Q3 2022, EPS increased 12% year over year to $2.33.
FY2023 Prelim Guide
For fiscal year 2023, Dollar General now expects same-store sales growth of 3-3.5% and EPS growth of 4-6%.
competition
Last week, competitor DG Dollar Tree (NASDAQ: DLTR ) reported fourth quarter 2022 results, which exceeded expectations. Net sales rose 9% to $7.7 billion while same-store sales rose 7.4%. EPS increased 1.5% to $2.04.
Also read: Dollar Tree (DLTR): A look at the discount retailer’s expectations for the near term
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