WASHINGTON (dpa-AFX) - Discount retailer Dollar General Corp. (DG) reported
on Thursday that net profit for the fourth quarter declined 39 percent from last
year, due to lower gross margins, higher expenses and a sales decline across
categories. However, adjusted earnings per share and quarterly net sales topped
analysts' estimates. The company also provided net sales growth guidance for the
full-year 2024, well above estimates.

In pre-market activity on the NYSE, Dollar General shares are surging $7.33 or
4.63 percent to trade at $165.50.

'With customer traffic growth and market share gains during the quarter, we
believe our actions are resonating with customers as they turn to Dollar General
for our unique combination of value and convenience,' said Todd Vasos, Dollar
General's chief executive officer.

For the fourth quarter, the variety stores chain reported net income of $401.81
million or $1.83 per share, down from $659.14 million or $2.96 per share in the
prior-quarter.

On average, 22 analysts polled by Thomson Reuters expected the company to report
earnings of $1.75 per share for the quarter. Analysts' estimates typically
exclude special items.

Net sales for the quarter decreased 3.4 percent to $9.86 billion from $10.20
billion in the same quarter last year. Analysts expected net sales of $9.78
billion for the quarter.

The company said net sales decrease was primarily driven by the period
containing one less week of sales than the prior year period, as well as the
impact of store closures, partially offset by positive sales contributions from
new stores and growth in same-store sales.

Same-store sales increased 0.7 percent, driven by an increase in customer
traffic, partially offset by a decrease in average transaction amount.

Gross margin declined 138 basis points to 29.5 percent, due to increased shrink
and inventory markdowns, lower inventory markups, and a greater proportion of
sales coming from the low margin consumables category.

Selling, general and administrative expenses as a percentage of net sales
increased 189 basis points to 23.6 percent.

Looking ahead to the first quarter, the company expects earnings in a range of
$1.50 to $1.60 per share on a same-store sales growth of 1.5 to 2.0 percent.
Analysts expect earnings of $1.89 per share for the quarter.

For fiscal 2024, the company now projects earnings in a range of $6.80 to $7.55
per share on net sales growth of 6.0 to 6.7 percent, with same-store sales
growth of 2.0 to 2.7 percent.

The Street is looking for earnings of $7.55 per share on net sales growth of 4.4
percent to $40.33 billion for the year.

The Company is also reiterating its plans to execute approximately 2,385 real
estate projects in fiscal year 2024, including approximately 800 new store
openings, 1,500 remodels, and 85 store relocations.

On Wednesday, the Company's Board of Directors declared a quarterly cash
dividend of $0.59 per share on the Company's common stock, payable on or before
April 23, 2024 to shareholders of record on April 9, 2024.

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