8.3 C
New York
HomeEntrepreneursDollar General stock jumps after it brings back former CEO

Dollar General stock jumps after it brings back former CEO


The exterior of a Dollar General convenience store is seen in Austin, Texas, on March 16, 2023.

Brandon Bell | Getty Images

Dollar General’s former CEO Todd Vasos is coming out of retirement to helm the company, which aims to rebound from slowing growth and allegations of unsafe working conditions.

Vasos, who served as the discounter’s CEO between June 2015 to November 2022, will replace Jeff Owen effective immediately, the company announced on Thursday.

“The Board has tremendous respect for Jeff and greatly appreciates his many contributions to the Company, especially during his long tenure leading our retail operations,” said Michael Calbert, the chairman of the company’s board, in a statement. “However, at this time, the Board has determined that a change in leadership is necessary to restore stability and confidence in the Company moving forward.”

Owen had been in the role for less than a year. During that time, Dollar General has seen a slowdown in its sales growth and has faced criticism from federal officials and activists for having unsafe stores that put employees at risk.

When it last reported earnings, Dollar General cut its full-year profit guidance. It did so again Thursday, and said it was now expecting earnings per share of about $7.10 to $7.60, compared to its previous expectation of $7.10 to $8.30.

Dollar General also said it anticipates net sales growth of 1.5% to 2.5%, revised from a previous expectation of 1.3% to 3.3%.

The company said it expects same-store sales to be in a range of flat to down 1% this year, versus a prior expectation of a 1% decline to a 1% increase.

Vasos said in a statement he is “honored” to rejoin the company at such a “pivotal time.”

“I look forward to getting back to work with the broader team as we strive to return to a position of operational excellence for our employees and customers and deliver sustainable long-term growth and value creation for our shareholders,” said Vasos.

This is breaking news. Please check back for updates.



Source link

latest articles

explore more

LEAVE A REPLY

Please enter your comment!
Please enter your name here