Dollar General Corp. experienced a significant boost in shares during the extended session on Thursday following the announcement that Todd Vasos will be returning as chief executive officer, effective immediately. The company also maintained its sales forecast, which aligns with analysts’ expectations.
Reinstating Stability with Todd Vasos at the Helm
In response to the news, Dollar General DG, -1.77% shares surged by 7% after hours. Todd Vasos, who previously served as the CEO from June 2015 to November 2022, has agreed to resume his role as CEO “for the foreseeable future.” While taking on this position, Vasos will also continue as a board member, a position he has held since 2015. He will succeed Jeff Owen, who assumed the role of CEO when Vasos initially announced his retirement in 2022.
Restoring Confidence and Stability
Dollar General recognized the need for change in leadership to restore stability and confidence in the company moving forward. In a statement, they expressed that this decision was necessary for the company’s future success.
Revised Sales Growth and Earnings Forecasts
The company has adjusted its sales growth forecast, narrowing it down to a range of 1.5% to 2.5%. This range is now more refined compared to the previous forecast of 1.3% to 3.3%. Furthermore, Dollar General expects earnings per share to fall within the range of about $7.10 to $7.60. This is a slight adjustment from their previous projection of $7.10 to $8.30 per share.
Analysts surveyed by FactSet have predicted that earnings will amount to $7.81 per share for the year. Additionally, they anticipate revenue of $38.73 billion, which represents a 2.4% increase compared to the previous year.