US' Dollar General narrows FY23 outlook; Todd Vasos returns as CEO

In terms of same-store sales, Dollar General anticipates a decline ranging from approximately 1.0 to 0.0 per cent, as opposed to its previous range, which included the possibility of 1.0 per cent growth.

The diluted EPS for fiscal 2023 is expected to be in the range of approximately $7.10 to $7.60, marking a decline of 34 to 29 per cent. The previous estimate ranged from $7.10 to $8.30, implying a drop of 34 to 22 per cent, the company said in a media release.

This revised EPS guidance considers various factors, including a negative impact of about four percentage points due to the 53rd week in fiscal 2022, as well as a similar negative impact arising from higher interest expenses in fiscal 2023. The Company continues to assume an effective tax rate of approximately 22.5 per cent.

Additionally, the company has announced that Todd Vasos, current board member and former chief executive officer (CEO), has been appointed CEO.  Vasos, who previously served as Dollar General’s CEO from June 2015 to November 2022, has agreed to return to lead the company for the foreseeable future. He will remain a member of the board of directors, a role he has held since 2015. Vasos succeeds Jeff Owen, who has separated from the company and resigned from its board.

During his initial seven-year term as CEO of Dollar General, Vasos led the company through a period of rapid growth and transformation. The company added 7,000 stores, nearly 60,000 jobs, and more than doubled its market capitalisation to about $58 billion. Vasos initially joined the company in 2008 and served various roles before becoming CEO in 2015. His first CEO term ended in November 2022, and he recently returned to the role. Before Dollar General, Vasos held leadership positions in other retail corporations, the release added.

“I am honoured to be rejoining Dollar General at this pivotal time for our company,” said Vasos. “I look forward to getting back to work with the broader team as we strive to return to a position of operational excellence for our employees and customers and deliver sustainable long-term growth and value creation for our shareholders.”

Fibre2Fashion News Desk (KD)