Todd Vasos, a member of the Dollar General Corporation (NYSE: DG) Board was reinstated as CEO. He succeeds Jeff Owen who resigned as both CEO and a member of the Board effective October 16th. Vasos was previously CEO from mid-2015 through late 2022.
In the past year Dollar General has faced numerous challenges including declining profit and share price. The Company has experienced a degradation of corporate image resulting from punitive action by the Department of Labor and a changing retail environment. The Board made the change to “refocus the company’s strategic direction on priorities to stabilize the business.”
Vasos joined Dollar General in 2008 as Executive VP and Chief Merchandizing Officer. He was appointed Chief Operating Officer in 2013 and became the CEO in 2015. During is tenure the company expanded the store base by 7,000 units, added 60,000 new jobs, increased revenue by more than 80 percent and doubled market capitalization. He was named a Most Admired CEO by the National Business Journal in 2021 and has received numerous industry awards.
In commenting on his appointment, Vasos stated, “I look forward to getting back to work with the broader team as we strive to return to a position of operational excellence for our employees and customers and to deliver sustainable long-term growth and value creation for our shareholders.”
For Q2 of Fiscal 2023 Dollar General Inc. posted net income of $464.8 million on total revenue of $9,796 million with a diluted EPS of $2.13. Comparable values for the second quarter of FY 2022 ending July 29th were net income of $678.0 million on revenue of $9,426 million with a diluted EPS $2.98. Revenue was up 3.9 percent in Q2 2023 compared to the corresponding Q2 in 2022. During the most recent quarter, Dollar General attained a gross margin of 31.1 percent (32.0 percent in Q2 FY 2022) and an operating margin of 7.1 percent, down from 9.7 percent in Q2 2022. Over the past 52 weeks DG has declined from a high of $261.59 to $101.09 with a 50-day moving average of $128.73.