Dollar General’s third-quarter sales rose 11.1 per cent but costs took a bite out of the company’s earnings.
The discounter remains committed to expanding its footprint, with plans to execute approximately 3,170 US real estate projects in fiscal year 2023 (ending 2 February 2024), including 1,050 new stores, 2,000 remodels, and 120 store relocations. It also plans to open new stores in Mexico, with a goal of operating up to 35 stores in Mexico by the end of fiscal 2023.
“Despite the cost pressures we experienced during the quarter, as well as challenges within our internal supply chain resulting in higher-than-anticipated distribution and transportation costs, our team was resilient and worked hard to deliver double-digit diluted EPS growth,” said Jeff Owen, who took the reins as Dollar General CEO at the beginning of November. “We believe the majority of these and other gross margin pressures are largely temporary, and we are confident in our plans to drive greater supply chain efficiencies moving forward.”