n a March 14^th release, Dollar General, Inc. (DG) announced Q4 and FY 2023 results for the period ending February 2^nd. The Company beat on both the top line and on earnings compared to concensus estimates.

For Q4 Dollar General Inc. posted net income of $402 million on total revenue of $9,858 million with a diluted EPS of $1.85.  Comparable values for Q4  FY 2022 ending February 3^rd were net income of $659 million on revenue of $10,203 million with a diluted EPS $2.96.

Revenue was down 3.4 percent in Q4 2023 compared to Q4 2022. During the most recent quarter, Dollar General attained a gross margin of 29.4 percent (30.9  percent in Q4 2022) and an operating margin of 5.9 percent, down from 9.1 percent in Q4 2022.

For FY 2023 Dollar General Inc. posted net income of $1,661 million on total revenue of $38,692 million with a diluted EPS of $7.55.  Comparable values for FY 2022  were net income of $2,416 million on revenue of $37,845 million with a diluted EPS $10.68.

The classification of revenue by category in FY 2023 comprised:-

• Consumables  including food,   81.0%
• Seasonal items,                          10.6%
• Home requirements,                    5.6%
• Apparel,                                       2.8%

For Q4 2023, consolidated comparable store sales, increased by 0.7 percent despite lower average transaction values partly offset by increased traffic.

In commenting on results, Todd Vasos, the recently re-instated CEO stated, “We were pleased to deliver fourth quarter top and bottom-line results at the upper end of our internal expectations. ”He added, “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.” He concluded, “We have made solid progress executing on our Back to Basics strategy, which we believe supported our improved operational performance during the quarter. While we are pleased with the operational improvement we have seen, we believe that significant opportunity remains, as we continue to focus on enhancing the way we support our teams and serve our customers.”

Guidance for FY 2023 included net sales growth of 6.0 to 7.0 percent; same-store sales growth of 2.0 to 2.7 percent; and diluted EPS ranging from $6.80 to $7.35.

During FY 2023 Dollar General opened a net 882 new stores, remodled 2,007 and relocated 129 units. As of February 2^nd the Company operated a total of 19,986 stores representing 151,095 square feet, a 5.7 percent growth over the year.

Effective February 2^nd 2024, Dollar General posted total assets of $30,706 million including $5,539 as goodwill and intangibles. The Company carried long-term debt and lease obligations of $16,118 million.  DG had a market capitalization of $33,810 million on March 20^th 2024. The share has traded over the past 52 weeks from $101.09 to $222,99 with a 50-day moving average of $151,095. DG closed at $148.24 on March 14^th, pre-release, closing at $155.76 on March 15^th Dollar General trades with a forward P/E of 21.5.  For the trailing 12-months the company posted an operating margin of 5.9 percent and a profit margin of 4.3 percent, returning 5.1 percent on assets and 27.0 percent on equity.