Dollar General store review and closures dent fourth-quarter earnings

Core Insights - Dollar General reported fiscal fourth-quarter revenue that slightly exceeded Wall Street estimates, but a store portfolio review negatively impacted profits [1][2] - The company plans to close 96 Dollar General stores and 45 Popshelf stores, while converting six Popshelf stores into flagship locations [1] Financial Performance - Fourth-quarter revenue increased by 4.5% to $10.3 billion compared to $9.86 billion in the same quarter of 2023, with full-year revenue reaching $40.61 billion, up nearly 5% from $38.69 billion in 2023 [2][3] - Net income for the fourth quarter was $191 million, or 87 cents per share, down from $402 million, or $1.83 per share, in the same quarter a year prior [3][4] - Operating profit fell over 49% year over year to $294 million, with $232 million attributed to store closures and impairment charges [4] Future Outlook - For fiscal year 2025, Dollar General forecasts revenue growth between 3.4% and 4.4%, slightly below Wall Street's expectation of 4.1% [3] - Earnings per share are projected to be between $5.10 and $5.80, compared to the analyst estimate of $5.85 [3] Strategic Initiatives - The company is testing same-day delivery services and plans to introduce about 100 new private-brand products in the first quarter [6][7] - Same-store sales grew by 1.2% year over year for the quarter and are expected to grow between 1.2% and 2.2% for the upcoming fiscal year [5]