(RTTNews) - Dollar General Corporation (DG) on Thursday said it sees fourth-quarter earnings lesser than its previous expectations citing lower-than-anticipated sales and higher-than-anticipated inventory damages following Winter Storm Elliott in the fourth quarter. The revised view also comes in below the Street estimates.
The company now expects a profit of $2.91-$2.96 per share, below its previous view of $3.15 - $3.30, provided in early December 2022.
23 analysts polled by Thomson Reuters were expecting the company to report earnings of $3.24 per share. Analysts typically exclude one-time items.
Same-store sales for the fourth quarter, however, increased 5.7%, from company's previous expectation of approximately 6% - 7%.
While both November and January same-store sales results were within the company's expected guidance range for the fourth quarter at 6.7% and 6.5%, respectively, December's same-store sales results were lower than anticipated at 4.5%, believed to be primarily as a result of the storm.
For the fiscal 2023, the company said it currently expects Same-store sales growth in the range of 3.0% - 3.5%. EPS growth is seen in the range of approximately 4% - 6%, including anticipated negative impacts of approximately three percentage points due to higher interest expense in fiscal 2023, and approximately four percentage points due to lapping the fiscal 2022 53rd week.
The company intends to provide its full financial results for the period on March 16, 2023.
Shares of Dollar General Corporation are currently trading in pre-market at $225.27, down $1.34 or 0.59 percent from the previous close.
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