Goodlettsville, Tenn. – The holiday quarter at Dollar General reflected the retailer’s Back to Basics strategy of improved store-level execution.
Net sales rose 4.5% to $10.3 billion, driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures.
Comp-store sales increased 1.2% compared with a 2.3% increase in average transaction amount offsetting a 1.1% decline in customer traffic.
As has been the case for some time, Dollar General comp growth was led by the consumables category. The retailer experienced declines in seasonal, home products and apparel categories.
“We were pleased with the underlying performance of the business in the fourth quarter, including improved execution and solid top-line results,” said Todd Vasos, Dollar General’s CEO.
Net income tumbled 52.4% to $191.2 million, or $0.87 per share. The decrease reflects a negative impact of approximately $0.81 per share in the fourth quarter related to Dollar General’s store portfolio optimization review.
Looking ahead, Dollar General expects to open approximately 575 new stores in the U.S. and up to 15 new stores in Mexico during 2025. It also plans to fully remodel approximately 2,000 stores and relocate approximately 45 stores.
The company plans to close 96 Dollar General stores during Q1. In addition, it will shutter 45 Popshelf stores and convert another six to the Dollar General format.
For the full fiscal year, the company expects:
- Net sales growth in the range of approximately 3.4% to 4.4%
- Same-store sales growth in the range of approximately 1.2% to 2.2%
- Diluted EPS in the range of approximately $5.10 to $5.80
“We have fortified the foundation of this business over the last year and are confident in our plans and initiatives for 2025 and beyond, as we look to further build on this base and create sustainable long-term value for our shareholders,” said Vasos.
See also:
- Dollar General appoints exec to lead expansion strategies
- Dollar General boosts top line despite weakness in discretionary sales