Dollar General ( DG , Financials ) reported lower earnings for the fourth quarter and fiscal year 2024 , citing impairment charges related to store closures and higher costs. As of 11:23 am GMT-4 on Thursday, Dollar General Corp's stock price stood at $78.74, reflecting a significant increase of $3.89 (5.20%) from the previous close.
Announcing a 49.2% dip in Q4 operating profit and a 29.9% annual fall overall, the discount retailer saidWhile full-year sales grew 5.0% to $40.6 billion, fourth-quarter net sales grew 4.5% to $10.3 billion. Driven mostly by increases in consumables, same-store sales increased 1.2% in Q4 and 1.4% for the year, offset by reductions in seasonal goods, home products, and clothes.From $579.7 million year before, operating profit for Q4 dropped to $294.2 million. From $2.4 billion in 2023, full-year operating profit fell to $1.7 billion. The business linked the drop to $232 million in costs linked to its retail portfolio optimization assessment, which included store closures and impairment charges for its Popshelf brand.With diluted earnings per share (EPS) decreasing 52.5% to $0.87.2 million and net income for Q4 declining 52.4%, to $191.2 million, Diluted EPS plummeted to $5.11 from $7.55 in the previous year; full-year net income dropped 32.3% to $1.1 billion.While turning six popshelf shops into Dollar General outlets in fiscal 2025, the business revealed intentions to liquidate 96 Dollar General stores and 45 popshelf sites. Along with refurbishing 4,250 current shops, Dollar General plans to establish 575 new U.S. outlets and up to 15 in Mexico despite closures.Operating cash flow climbed 25.3% to $3.0 billion. The board decided on a quarterly dividend of $0.59 a share.The business forecasts same-store sales growth of 1.2%-2.2% and net sales increase of 3.4%4.4% for fiscal 2025. Projected to be between $5.10 and $5.80 is diluted EPS. Expected are capital expenditures ranging from $1.3 billion to $1.4 billion.Targeting 3.5%4.0% annual net sales growth, 2%3% same-store sales growth by 2026, and 10%+ diluted EPS growth starting in 2026, Dollar General also presented a long-term financial roadmap.
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