Although its recent fourth-quarter sales results came in below expectations, Dollar General reported gains in both net and same-store sales, as well as growth in market share and new customers. For Q4, Dollar General’s net sales increased 17.9% to $10.2 billion, and same-store sales increased 5.7% compared with Q4 2021, driven by an increase in average transaction amount but partly offset by a modest decrease in customer traffic. Operating profit increased 17.1% to $933.2 million, and diluted earnings per share (EPS) increased 15.2%.
Looking forward to FY23, Dollar General is reiterating its previously stated sales goals of net sales growth of approximately 5.5% to 6% and same-store sales growth in the range of 3.0% to 3.5%. Diluted EPS growth in the range of approximately 4% to 6% is also expected. The company still plans to execute 3,170 real estate projects in FY23, including 1,050 new store openings, 2,000 remodels and 120 store relocations.
As of March 3, Goodlettsville, Tenn.-based Dollar General operated 19,147 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico. The company is No. 15 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.