A comprehensive store in Germantown, New York on November 30, 2023.
Angus Mordant/Bloomberg by Getty Images
US dollar general On Thursday, fourth-quarter revenue nearly beat Wall Street estimates, while comments from the store portfolio cut profits for the chain.
As part of the reevaluation, the USD Store chain said it would close the $96 general store and 45 popular cargo stores and convert six other Popshelf stores into flagship banner locations in the first quarter. Popshelf Store Catering to high-income shoppers Looking for cheap products.
The company’s shares rose 5% in listing trading Thursday.
This is intraday performance compared to Wall Street’s quarter ended on January 31, according to an LSEG survey of analysts:
- Earnings per share: 87 cents. This is probably compared to the estimated $1.50.
- income: $10.3 billion vs. $10.26 billion
Fourth-quarter revenue rose 4.5% from $9.86 billion in the same quarter of 2023. Revenue for the full year was $40.61 billion, up nearly 5% from $38.69 billion in 2023.
In fiscal 2025, the chain forecasts revenue growth between 3.4% and 4.4%, while Wall Street expects annual growth of 4.1%. According to LSEG, Dollar General expects annual earnings per share to be between $5.10 and $5.80, slightly below analysts’ expectations of $5.85.
Dollar General reported that in the same quarter a year ago, net income was $191 million, or 87 cents per share, compared with net income of $402 million, or 1.83 per share.
The disc said its portfolio review affected earnings per share of 81 cents.
Operating profit for the quarter fell 49% year-on-year to $294 million. The company attributed $232 million in charges from portfolio reviews and the expenses of Popshelf damage to the store closure.
“As we hope to build on the significant progress we have made in the 2024 fiscal year, we believe this review is appropriate and can further strengthen our business base,” said Todd Vasos, president of Dollar. In a press release. “While the number of closures is less than one percent of our overall store base, we believe this decision can serve our customers and our community better.”
Same-store sales (Dollar General) defines it as store revenue for at least 13 months, up 1.2% year-on-year in the quarter. The company said it expects growth of 1.2% to 2.2% in the coming fiscal year.
US dollar general Announce In December, it is testing the same-day delivery for customers. As inflation causes losses to low-income consumers, dollar stores like Dollar General and Dollar Tree The increase faced competition From a retailer Walmart Have a larger e-commerce presence.
January, US dollars are average explain It will start selling about 100 new private-branded products, most of which will fall under its Clover Valley label and include items like honey mustard and cinnamon rolls in the first quarter.
