The gross profit margin dropped to 29 per cent in the third quarter of FY23, down from 30.5 per cent in the same quarter of the previous year, marking a decrease of 147 basis points. Selling, general, and administrative expenses also rose, representing 24.5 per cent of net sales, an increase from 22.7 per cent in the third quarter of FY22, the company said in a press release.

The company's operating profit reflected these challenges, with a significant decrease of 41.1 per cent to $433.5 million, compared to $735.5 million in the third quarter of FY22. This decline extended to Dollar General's net income, which decreased by 47.5 per cent to $276.2 million for the third quarter of FY23, compared to $526.2 million in the corresponding quarter of the previous year. Consequently, diluted earnings per share (EPS) also fell by 45.9 per cent to $1.26 for the third quarter of FY23, from $2.33 in the third quarter of FY22.

On the inventory front, the company reported a slight shift. As of November 3, 2023, total merchandise inventories were at $7.4 billion, showing a modest decrease of 1.8 per cent on a per-store basis compared to $7.1 billion as of October 28, 2022.

“I am excited to be back at Dollar General and working with the team to fulfill our mission of Serving Others every day,” said Todd Vasos, Dollar General’s chief executive officer. “Over the last several weeks, we have spent significant time reviewing all areas of the business, and we have identified key opportunities for improvement both in the near term and over the longer term. Moving forward, our entire team is laser focused and moving with urgency to take the actions we have identified to drive operational excellence for our customers and employees.”

Fibre2Fashion News Desk (DP)