Dollar General Corp forecast full-year sales above analysts' estimates, as higher prices of everyday essentials make more Americans frugal and turn to discount stores for their groceries and household supplies.
U.S. discount stores have seen store traffic remain steady as people gradually resume their pre-pandemic life after an Omicron-led pause and go back to buying more discounted apparel, moisturisers, lipstick and accessories.
The pandemic-led trend of cooking at home has also sustained even as coronavirus-related curbs have eased due to people reining in their spending at restaurants, helping grocery sales at discount stores that benefited during the lockdowns.
Net Sales Set To Increase
The discount store operator forecast full-year net sales to increase about 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.
'Unwavering Commitment'
“We are pleased with our fourth quarter and fiscal 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, Dollar General’s chief executive officer.
“Despite a more challenging than expected operating environment, our teams remained focused on executing our operating priorities and advancing our strategic initiatives, which we believe position us well for solid sales and profit growth in 2022 and beyond.”
Looking ahead, Vasos said that he was "excited" about the group's plans for 2022, "as we look 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, Profit As Costs Surge
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