Board: 'change in leadership necessary to restore stability'

GOODLETTSVILLE, Tenn. — In a major shakeup, Dollar General Corp announced the reappointment of Todd Vasos as chief executive officer, effective immediately. The move, which comes less than a year after Vasos retired, signals the company’s intention to reorient itself and chart a new strategic course.

Michael Calbert, Chairman of Dollar General’s Board of Directors, expressed appreciation for Jeff Owen’s contributions but added: “the Board has determined that a change in leadership is necessary to restore stability and confidence in the company moving forward.”

Dollar General, a retail powerhouse with nearly 85 years of history, is counting on Vasos to refocus the company’s direction and priorities.

“We are confident Todd’s deep expertise and familiarity with Dollar General, as well as the strong relationships and respect he has maintained with our executive team, will support a seamless transition,” Calbert said.

Vasos previously served as CEO from June 2015 to November 2022.

“I am honored to be rejoining Dollar General at this pivotal time for our company,” Vasos said. “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.”

During Vasos’ previous seven-year tenure as CEO, he led Dollar General through a period of significant transformation, expanding the store base by around 7,000 stores, adding nearly 60,000 net new jobs, increasing annual sales revenue by more than 80%, and more than doubling its market capitalization to approximately $58 billion. The company received multiple accolades during this period, including being named to Fortune Magazine’s World’s Most Admired Companies List, Forbes’ Top 25 Responders to Covid-19 Pandemic, Mass Market Retailers’ Retailer of the Year, and recognition by the Human Rights Campaign Foundation’s Corporate Equality Index. Vasos was also named a Most Admired CEO by the Nashville Business Journal in 2021.

Vasos initially joined Dollar General in 2008 as Executive Vice President, Division President, and Chief Merchandising Officer, later rising to Chief Operating Officer in 2013 before becoming CEO in 2015. His first tenure as CEO concluded in November 2022, after which he served as a Senior Advisor until his retirement in April 2023. Prior to joining Dollar General, Vasos held leadership roles with Longs Drug Stores Corporation, Phar-Mor Food and Drug Inc., and Eckerd Corporation. He has also been a director of KeyCorp since July 2020.

Financial Outlook for Fiscal Year 2023

Dollar General also said it is narrowing its outlook for fiscal year 2023, factoring in year-to-date financial results and expectations for the remainder of the fiscal year. The updated guidance includes:

• Net sales growth in the range of 1.5% to 2.5%, compared to the previous expectation of 1.3% to 3.3%, both accounting for an anticipated negative impact of approximately two percentage points due to lapping the fiscal 2022 53rd week.
• Same-store sales growth in the range of a decline of approximately 1.0% to 0.0%, compared to the previous expectation of a decline of approximately 1.0% to growth of 1.0%.
• Diluted earnings per share (“EPS”) in the range of approximately $7.10 to $7.60, representing a decline of 34% to 29%, compared to the previous expectation in the range of approximately $7.10 to $8.30, representing a decline of 34% to 22%. The Diluted EPS guidance includes an anticipated negative impact of approximately four percentage points due to lapping the fiscal 2022 53rd week and higher interest expenses in fiscal 2023. The guidance also assumes an effective tax rate of approximately 22.5%.