Dollar(DG) - 2025 Q4 - Annual Report

Financial Performance - Net sales for the year ended January 31, 2025, increased to $40,612,308, up 4.8$38,691,609 in 2024[266]. - Gross profit rose to $12,017,497, representing a gross margin of 29.6$11,719,024 in 2024[266]. - Operating profit decreased to $1,714,074, down 30$2,446,300 in the previous year[266]. - Net income for the year was $1,125,253, a decline of 32.2$1,661,274 in 2024[266]. - Earnings per share (EPS) for diluted shares was $5.11, down from$7.55 in 2024[266]. - The company reported a comprehensive income of $1,127,747 for the year, down from$1,661,724 in 2024[269]. - Consolidated net income for 2024 was $1,125,253, a decrease of 32.2$1,661,274 in 2023[392]. Assets and Liabilities - Total current assets increased to $8,163,925, compared to$8,010,724 in the previous year[264]. - Total assets grew to $31,132,733, up from$30,795,591 in 2024[264]. - Total shareholders' equity increased to $7,413,707, compared to$6,749,119 in 2024[264]. - The total carrying amount of accrued expenses and other liabilities was $1,045.9 million as of January 31, 2025, compared to$971.9 million in 2024, representing a 7.6% increase[300]. - As of January 31, 2025, the company's total long-term obligations amounted to $5,719,025, a decrease from$6,231,539 in the previous year[348]. Cash Flow and Liquidity - The increase in cash and cash equivalents was primarily driven by cash from operations as of January 31, 2025[252]. - Net cash provided by operating activities increased to $2,996,064 in 2025 from$2,391,798 in 2024, representing a growth of 25.3%[274]. - Cash and cash equivalents at the end of the period increased to $932,576 in 2025 from$537,283 in 2024, marking a rise of 73.5%[274]. - The company had no consolidated commercial paper borrowings and no borrowings outstanding under its Revolving Facility as of January 31, 2025[250]. Expenses and Costs - Depreciation and amortization expense for 2024 was approximately $963.8 million, up from$839.9 million in 2023[287]. - Operating lease costs for 2024 amounted to $1.89 billion, an increase from$1.75 billion in 2023, with variable lease costs of $0.39 billion[344]. - Interest expense for 2024 was$274,320, a decrease from $326,781 in 2023[392]. - Advertising costs were$122.9 million in 2024, a decrease from $130.6 million in 2023, indicating a 5.2$2.36, consistent with the previous year[266]. - The quarterly cash dividend declared in March 2025 is $0.59 per share, consistent with the amount paid in 2024[398]. - The company repurchased 11.6 million shares of common stock at a total cost of$2.7 billion during the year ended February 3, 2023[397]. Legal and Regulatory Matters - The company is currently involved in shareholder securities litigation, which could materially affect its consolidated financial statements[370]. - The company believes that its pending legal matters will be resolved without a material adverse effect on its consolidated financial statements[375]. Strategic Initiatives - The company is focused on strategic initiatives including digital initiatives and international expansion plans[14]. - The company adopted new required disclosures for supplier finance programs in fiscal 2023, enhancing transparency for investors[324]. Market and Economic Conditions - The company anticipates ongoing inflationary and labor pressures impacting its financial condition and liquidity[14]. - The annualized effect of a one percentage point increase in variable interest rates would have resulted in a pretax reduction of approximately $3.5 million in earnings and cash flows for the year 2023[253]. Inventory and Store Operations - Total merchandise inventories increased by$230,208 in 2025, compared to a decrease of $299,066 in 2024[274]. - The Company operated 20,594 stores as of January 31, 2025, with a significant concentration in the southern and midwestern United States[276]. - A total of 141 stores will be permanently closed in the first quarter of fiscal 2025, comprising 96 Dollar General and 45 pOpshelf stores[399].