Dollar General Corp. predict full-year sales above analysts’ estimates as higher prices for basic necessities make Americans more frugal and turn to discount stores for groceries and household supplies.
U.S. discount stores have seen in-store traffic hold steady as people gradually return to their pre-pandemic lives after an Omicron-led break and start shopping for discounted clothing, moisturizers, lipstick and accessories again .
The pandemic cooking-at-home trend also held steady even as coronavirus-related drags eased as people got their restaurant spending under control, helping grocery sales at discount stores that benefited during the closures.
Net sales are expected to increase
The discount store operator expects full-year net sales to rise around 10%, while analysts on average expect growth of 7.5%, according to IBES data from Refinitiv .
The company’s net income for the quarter ended Jan. 28 fell to $597.4 million, or $2.57 per share, from $642.74 million, or $2.62 per share, a year earlier. early.
“We are pleased with our fourth quarter and full year results, and I want to thank our associates for their unwavering commitment to meeting the critical needs of our customers during the pandemic,” said Todd Vasos, CEO of Dollar General. .
“Despite a more challenging operating environment than expected, our teams remained focused on executing our operational priorities and advancing our strategic initiatives, which we believe positions us well for solid sales and earnings growth. in 2022 and beyond.”
Looking ahead, Vasos said he was “excited” about the group’s plans for 2022, “as we seek to further differentiate Dollar General from the rest of the retail landscape, while delivering long-term sustainable growth. and value for our shareholders”.
Read more: Dollar General Forecasts Tepid Sales, Profits as Costs Rise
News by Reutersedited by ESM- your source for the latest retail news. Click subscribe to register ESM: European Supermarket Magazine.