Shoppers are still making their way to Dollar General and piling up on certain items to cook at home. The discount retailer reported earnings Thursday that beat Wall Street expectations, saying customers are still buying groceries and other essentials. But Dollar General said consumers are holding off from purchasing home products, clothing, and seasonal items as inflation lingers.
Dollar General stock initially jumped 9% during pre-market trading Thursday morning following its fourth quarter earnings report, before giving back some of those gains to trade up more than 4%.
The Goodlettsville, Tennessee-based Dollar General beat Wall Street’s expectations despite revenue for the quarter declining. The company generated revenue during the holiday-quarter of $9.9 billion, or earnings of $1.83 per share. Analysts had expected revenue of $9.78 billion, or $1.74 per share.
Read more: Dollar Tree will close almost 1,000 Family Dollar stores
Dollar General warned of a subdued fiscal 2024 outlook, due in part to a smaller labor force and less inventory. The company expects same-store sales to grow between 2.0% and 2.7%, with earnings per share between the range of $6.80 per share to $7.55 a share.
Even so, the discount retailer is eyeing expansion. During the 2024 fiscal year, it plans to open approximately 800 new stores, remodel 1,500, and relocate 85.
That’s in stark contrast to immediate competitors like Dollar Tree, which said Wednesday that it would be closing almost 1,000 Family Dollar locations this year.
This is a developing story and will be updated.