US' Dollar General posts double digit net sales growth in FY22

However, the company saw a decrease in gross profit as a percentage of net sales, dropping from 31.6 per cent in FY21 to 31.2 per cent in FY22, and an increase in selling, general, and administrative expenses as a percentage of net sales, rising from 22.2 per cent to 22.4 per cent. Operating profit for fiscal year 2022 increased 3.3 per cent to $3.3 billion, and net income increased by 0.7 per cent to $2.4 billion, the company said in a press release.

In the fourth quarter (Q4) of fiscal 2022, the company's net sales increased by 17.9 per cent to $10.2 billion compared to the same quarter of the previous year, with same-store sales up by 5.7 per cent. However, the company saw a decrease in gross profit as a percentage of net sales, dropping from 31.2 per cent to 30.9 per cent, and selling, general, and administrative expenses as a percentage of net sales decreased from 22 per cent to 21.7 per cent. Despite this, operating profit for the fourth quarter increased by 17.1 per cent year-on-year (YoY) to $933.2 million, and net income increased by 10.3 per cent (YoY) to $659.1 million.

Looking ahead, Dollar General Corporation expects net sales growth in the range of approximately 5.5 per cent to 6 per cent for fiscal 2023. The company is also projecting same-store sales growth in the range of 3.0 per cent to 3.5 per cent and diluted EPS growth in the range of approximately 4 per cent to 6 per cent. The company plans to execute 3,170 real estate projects in FY23, including 1,050 new store openings, 2,000 remodels, and 120 store relocations.

“Our fourth-quarter sales results were strong, although below our expectations, and we are pleased with continued market share gains in both consumables and non-consumables, as well as continued growth with new and existing customers,” said Jeff Owen, Dollar General’s chief executive officer.

Fibre2Fashion News Desk (DP)