Dollar General Is Going Abroad, Opening Stores in Mexico
(Bloomberg) -- Dollar General Corp. is preparing its first international expansion, with plans to open as many as 10 stores in Mexico by early 2023.
The move will help “lay the foundation for future growth,” Chief Executive Officer Todd Vasos said in a statement Thursday as the retailer reported earnings. In the U.S., the company will ramp up locations of its pOpshelf concept, which caters to higher-income customers than the company’s traditional dollar stores.
Dollar General is boosting its investment plans as it seeks to reverse a recent slowdown in same-store sales after major gains during the first year of the coronavirus pandemic. Same-store sales will fall as much as 3% during the current fiscal year, which ends in early 2022, the Goodlettsville, Tennessee-based retailer said. The gauge jumped 16% last year.
Earnings for the fiscal year will be between $9.90 and $10.20 a share, Dollar General said. While the low end of that forecast was higher than before, the midpoint of $10.05 a share trailed the $10.20 average of analyst estimates compiled by Bloomberg.
During the third quarter, same-store sales slipped 0.6%. Wall Street had predicted a decline of 0.9%.
The shares fell 1.7% to $219 ahead of regular trading in New York.
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