Dollar General (DG) - Get Report posted weak-than-expected fourth quarter earnings Thursday and noted that same-store sales have fallen sharply in recent weeks as the broader economy continues to re-open in the wake of the coronavirus pandemic.
Dollar General said earnings for the three months ending in January came in at $2.62 per share, up 24.75% from the same period last year but 10 cents shy of the Street consensus forecast. Group revenues, Dollar General said, rose 17.3% to $8.4 billion, topping analysts' estimates of an $8.3 billion tally.
Dollar General said same-store sales for the weeks between February 27 and March 16 were down 16% from the same period last year, and sees a full-year decline in the region of 4% to 6%.
“We are pleased with our strong finish to fiscal 2020, and I thank all of our associates for their extraordinary efforts over the past year to support our customers, our communities and each other,” said CEO Todd Vasos. “Despite a challenging operating environment, our team members have remained steadfast in their dedication to fulfilling our mission of Serving Others, resulting in exceptional fourth-quarter and full-year financial results.”
“We continue to operate from a position of strength, and are excited about our plans for 2021 to continue delivering value and convenience for our customers, along with long-term sustainable growth and value for our shareholders,” he added.
Dollar General share were marked 7.4% lower in mid-morning trading following the earnings release to indicate an opening bell price of $173.90 each, a move that extends the stock's six-month decline to around 17%.