The outside 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 corporate, which goals to rebound from slowing growth and allegations of unsafe working conditions.
Vasos, who served because the discounter’s CEO between June 2015 to November 2022, will replace Jeff Owen effective immediately, the corporate 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 corporate’s board, in an announcement. “Nonetheless, right now, the Board has determined that a change in leadership is obligatory to revive stability and confidence within the Company moving forward.”
Owen had been within the role for lower than a 12 months. During that point, 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 in danger.
The corporate, which is rapidly adding stores and exanding its footprint, has greater than 19,000 locations in 47 states. Dollar General has greater than 185,000 full- and part-time employees.
Dollar General shares jumped greater than 6% in prolonged trading Thursday.
Lower guidance
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, in comparison with 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 three.3%.
The corporate said it expects same-store sales to be in a spread of flat to down 1% this 12 months, versus a previous expectation of a 1% decline to a 1% increase.
Vasos said in an announcement he’s “honored” to rejoin the corporate at such a “pivotal time.”
“I sit up for getting back to work with the broader team as we try 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.
Slowing sales have come amid pressure from employees and activists over working conditions. In May, shareholders passed a resolution, over the objections of the corporate’s board, to begin an independent audit into employee safety. However it was unclear if the measure was binding and whether the corporate would carry it out.
Dollar General has gathered greater than $21 million in fines from federal officials for issues including blocked fire exits, blocked electrical outlets and clutter.
On the time the shareholder resolution passed, a Dollar General spokesperson said the corporate goals “to create a piece environment where employees are capable of grow their careers, serve their local communities and feel valued and heard, and we encourage employees to share their feedback through the various company-provided channels in order that we will listen and work together to deal with concerns and challenges, in addition to to rejoice successes.”