Dollar General Q4 Profit Rises, While Children's Place Slips To Loss

(RTTNews) - Retailers Dollar General Corp. (DG) and The Children's Place, Inc. (PLCE) reported on Thursday that financial results for the fourth quarter, with Dollar General profit and revenues growing from last year and Children's Place slipping to a loss with net sales also declining from last year.

Earnings per share met analysts' estimates at Dollar General, while loss per share at Children's Place came in narrower than estimates. Both Dollar General and Children's Place initiated guidance for the full-year 2023.

Variety stores chain Dollar General reported net income of $659.14 million or $2.96 per share, up from $597.43 million or $2.57 per share in the prior-quarter.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.96 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 17.9 percent to $10.20 billion from $8.65 billion in the same quarter last year. Analysts expected net sales of $10.24 billion for the quarter.

The company said net sales increase was primarily driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures.

Same-store sales increased 5.7 percent, riven by an increase in average transaction amount, partially offset by a modest decrease in customer traffic.

"Our fourth-quarter sales results were strong, although below our expectations, and we are pleased with continued market share gains in both consumables and non-consumables, as well as continued growth with new and existing customers," said Jeff Owen, Dollar General's chief executive officer.

Looking ahead to fiscal 2023, the company now projects earnings growth in a range of about 4 to 6 percent on net sales growth of 5.5 to 6.0 percent, with same-store sales decline in the 3.0 to 3.5 percent range.

The Street is looking for earnings of $11.43 per share on net sales growth of 5.8 percent to $40.07 billion for the year.

The company also reiterated its plans to execute 3,170 real estate projects in fiscal 2023, including 1,050 new store openings, 2,000 remodels, and 120 store relocations.

On Wednesday, the Company's Board of Directors declared an increased quarterly cash dividend of $0.59 per share on the Company's common stock, payable on or before April 25, 2023 to shareholders of record on April 11, 2023.

Specialty apparel retailer The Children's Place reported a net loss for the fourth quarter of $50.53 million or $4.10 per share from $39.00 million or $2.68 per share in the prior-year quarter.

Excluding items, adjusted net loss was $3.87 per share, compared to $3.02 per share last year. Analysts expected the company to report a loss of $4.09 per share for the quarter.

Net sales for the quarter declined 10.2 percent to $456.13 million from $507.80 million in the same quarter last year. Analysts expected revenue of $455.33 million for the quarter. Comparable retail sales decreased 12.8 percent for the quarter.

Looking ahead to the first quarter, the company expects adjusted loss in a range of $1.60 to $1.90 per share on net sales between $335 million and $345 million. Analysts expect a loss of $1.21 per share on net sales of $342.53 million for the quarter.

For fiscal 2023, the company now projects adjusted earnings in a range of $2.50 to $3.00 per share on net sales between $1.62 billion and $1.66 billion. The Street is looking for earnings of $3.35 per share on net sales of $1.71 billion for the year.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com