Dollar General sees FY23 EPS growth 4%-6%, consensus $11.43

The company previously provided preliminary expectations for same-store sales growth and Diluted EPS growth in its press release on February 23, 2023. The company is reiterating those expectations, as well as providing additional financial guidance, and currently expects the following for fiscal 2023: Net sales growth in the range of approximately 5.5% to 6%, including an anticipated negative impact of approximately two percentage points due to lapping the fiscal 2022 53rd week; Same-store sales growth in the range of 3.0% to 3.5%; Diluted EPS growth in the range of approximately 4% to 6%, including anticipated negative impacts of the following: 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 This Diluted EPS guidance assumes an effective tax rate in the range of approximately 22.5% to 23.0%.Share repurchases of approximately $500 million. Capital expenditures, including those related to investments in the Company’s strategic initiatives, in the range of $1.8 billion to $1.9 billion. The Company is also reiterating 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. "Our fiscal 2023 full-year outlook reflects our confidence in the business, even in a potentially challenging economic and operating environment," said John Garratt, Dollar General’s president and CFO. "While we anticipate the first half of fiscal 2023 to be negatively impacted by ongoing sales mix pressures, higher shrink levels, increased damages, and higher interest expense, we are confident in our full-year plans. Our outlook for the year includes strong sales and operating profit, while also providing for investments intended to drive long-term sustainable growth. We continue to be disciplined in managing expenses and capital, while delivering on our financial priorities to drive profitable same-store sales growth, healthy new-store returns, and long-term shareholder value."