Major retailer Dollar General has released its financial results for the fourth quarter and fiscal year ending January 31, 2025. While the company achieved a 4.5% increase in quarterly sales, it reported a significant 49.2% decline in operating profit.
Fourth Quarter Results
Dollar General reported a 4.5% increase in quarterly sales, reaching $10.3 billion. However, operating profit fell by 49.2%, amounting to $294.2 million. Earnings per share (EPS) also decreased by 52.5%, to $0.87. These results were impacted by $232 million in charges associated with a store portfolio review.
Full Fiscal Year Performance
For the full fiscal year, the company's net sales increased by 5.0% to $40.6 billion. Notably, cash flows from operations rose by 25.3% to $3.0 billion. Same-store sales for the fourth quarter grew by 1.2% due to a 2.3% increase in average transaction amount, despite a 1.1% decrease in customer traffic.
Fiscal Year 2025 Outlook
Dollar General provides guidance for net sales growth ranging from 3.4% to 4.4% for fiscal 2025 and plans approximately 4,885 real estate projects, including opening 575 new stores in the U.S. and 15 in Mexico. Additionally, about 2,000 store remodels and 45 relocations are in the pipeline.
Despite the decline in quarterly earnings, Dollar General remains focused on long-term strategic initiatives aimed at achieving sustainable growth and strengthening market position.
