NEW YORK, Jan. 6, 2024 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Dollar General Corporation (“Dollar General” or the “Company”) (NYSE: DG). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Dollar General and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On February 23, 2023, Dollar General unexpectedly pre-released its preliminary fourth quarter 2022 and fiscal year 2022 (“4Q22” and “FY22,” respectively) financial results. The Company disclosed that 4Q22 sales and earnings would come in materially below expectations, blaming winter storm Elliott (which had occurred at the end of 2022), for the sales miss and admitting that the results were negatively impacted by lower sales and higher inventory damages.
On this news, Dollar General’s stock price fell $8.16 per share, or 3.62%, to close at $217.11 per share on February 23, 2023.
Then, on March 16, 2023, Dollar General reported its final 4Q22 and FY22 financial results. For the 4Q22, the Company’s net sales rose only 17.9% year-over-year, and for the full year net sales only rose 10.6% year-over-year, missing the Company’s prior guidance. Acknowledging that the Company had experienced a “decrease in customer traffic,” Dollar General attributed the sales miss to “the impact of store closures.” Dollar General announced a one-time “‘incremental investment of approximately $100 million in our stores, primarily in incremental labor hours, as we look to build on our sales momentum and capture additional market share by further enhancing store standards and the in-store experience.'”
On this news, Dollar General’s stock price fell $6.47 per share, or 2.96%, to close at $212.09 per share on March 16, 2023.
On June 1, 2023, Dollar General reported disappointing first quarter 2023 (“1Q23”) results for the period ended May 5, 2023, revealing 1Q23 revenue $130 million below analyst estimates. The Company slashed its fiscal year 2023 (“FY23”) earnings forecast, stating it only expected FY23 same-store sales to rise between 1% and 2% for the year, a reduction of more than 50% at the midpoint from its prior same-store sales growth forecast of 3% to 3.5%, and that it only expected FY23 sales growth in the range of 3.5% to 5% for the year, down 26% at the midpoint from the prior 5.5% to 6% range provided in March 2023.
On this news, Dollar General’s stock price fell $39.23 per share, or 19.51%, to close at $161.86 per share on June 1, 2023.
Finally, on August 31, 2023, Dollar General reported its second quarter 2023 (“2Q23”) financial results, again slashing its FY23 sales and profit outlook. This time the Company blamed a “headwind,” including weaker consumer spending on non-essential purchases and increasing theft. For the quarter, same-store sales decreased 0.1%, operating profits decreased 24.2%, and EPS decreased 28.5%.
On this news, Dollar General’s stock price fell $19.16 per share, or 12.15%, to close at $138.50 per share on August 31, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP
