Dollar General Reveals Plans to Improve Tech, Assortment, Merch
Dollar General’s Q4 net sales rose 2 percent to $6.1 billion, compared with $6 billion in the year-ago period, which included an extra week. The company attributed the 2017 Q4 net sales increase to sales from new stores, somewhat offset by sales from closed stores.
The same-store sales increase noted above was because of a higher average transaction amount, partly offset by a slight decrease in customer traffic. Consumables and seasonal categories sold well, while apparel and home category sales dropped.
FY 2017 Results
Dollar General’s fiscal year 2017 net sales rose 6.8 percent to $23.5 billion, from $22 billion last year, which had an additional week. According to the retailer, the net sales increase was caused by sales from new stores, modestly offset by sales from closed stores. The same-store sales rise was explained by increases in average transaction amount and customer traffic, with sales driven by consumables and seasonal categories, partially offset by poorly selling home and apparel categories.
For fiscal year 2018, the company released guidance of a net sales increase of about 9 percent, with same-store sales growth anticipated to be in the mid-2 percent range. Dollar General added that it expects fiscal year 2018 diluted EPS to be in the range of $5.95 to $6.15, assuming an estimated effective tax rate of 22 percent to 23 percent. The company also plans to open around 900 new stores, remodel 1,000 and relocate 10 in the upcoming fiscal year.
Goodlettsville, Tenn.-based Dollar General operates 14,534 stores in 44 states.