Dollar General Corporation stock (New York Stock Exchange: DG) fell slightly on Wednesday. The stock has fallen 11% since the beginning of the year. The discount retailer is due to report its fourth-quarter 2022 earnings results on Thursday, March 16, and provided certain preliminary results last month. A few caveats ahead of the next report.
Earnings
Analysts expect Fourth Quarter 2022 Dollar General earnings to be $10.24 billion. This reflects his 18% increase from the same period last year. Net sales in Q3 2022 increased 11% to his $9.5 billion. This was driven by the positive contribution to new store sales and growth in same store sales.
Existing store sales
In February, Dollar General reported fourth-quarter same-store sales below the company’s forecast of about 20%, despite continued market share gains in both consumable and non-consumable sales. said that it only increased by 5.7% against %. 6-7% growth.
The company believes the lower-than-expected results were primarily due to lower-than-expected sales and higher-than-expected inventory losses due to the impact of Winter Storm Elliott in the fourth quarter. Comparable store sales were 6.7% in November and 6.5% in January, both within the expected range for Q4.
Earnings
Dollar General expects fourth-quarter EPS of $2.91 to $2.96, compared with its previous forecast of $3.15 to $3.30. This compares to the reported EPS of $2.57 in the fourth quarter of 2021. EPS increased 12% year-over-year to $2.33 in the third quarter of 2022.
2023 Interim Guidance
For fiscal 2023, Dollar General now expects comparable store sales growth of 3% to 3.5% and EPS growth of 4% to 6%.
competition
Last week, DG’s rival Dollar Tree (Nasdaq: DLTR) reported better-than-expected fourth quarter 2022 earnings results. Net sales were up 9% to $7.7 billion, while same-store sales were up 7.4%. EPS increased 1.5% to $2.04.
Also read: Dollar Tree (DLTR): Short-term forecasts for discount retailers
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