LOS ANGELES, Dec. 11, 2023 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming January 26, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Dollar General Corporation (“Dollar General” or the “Company”) (NYSE: DG) securities between February 23, 2023 and August 31, 2023, inclusive (the “Class Period”).
If you suffered a loss on your Dollar General investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Dollar-General-Corporation-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On February 23, 2023, Dollar General released its preliminary fourth quarter 2022 and fiscal year 2022 financial results, disclosing that fourth quarter sales and earnings would come in significantly lower than expected due to lower sales and higher inventory damages. On this news, Dollar General’s stock price fell $8.16, or 3.6%, to close at $217.11 per share on February 23, 2023, thereby injuring investors.
Then, on March 16, 2023, Dollar General released its final fourth quarter 2022 and fiscal year 2022 financial results, revealing that the Company’s net sales had risen on 17.9% year-over-year for the quarter, and only 10.6% year-over-year for the full year. The Company blamed the poor results on a “decrease in customer traffic” as an “impact of store closures.” On this news, Dollar General’s stock price fell $6.47, or 3%, to close at $212.09 per share on March 16, 2023.
Then, on June 1, 2023, Dollar General reported disappointing first quarter 2023 financial results with revenue falling $130 million below analyst estimates. Additionally, the Company lowered its fiscal year 2023 earnings forecast, expecting same-store sales to rise between 1% and 2% for the year, a reduction of more than 50% at the midpoint from its prior same-store sales growth forecast of 3% to 3.5%, and that it only expected FY23 sales growth in the range of 3.5% to 5% for the year, down 26% at the midpoint from the prior 5.5% to 6% range provided in March 2023. Further, the Company reported that its EPS were on track to decline by up to 8% year-over-year, not grow by 4% to 6% as previously stated. On this news, Dollar General’s stock price fell $39.23, or 19.5%, to close at $161.86 per share on June 1, 2023.
Then, on August 31, 2023, Dollar General released its second quarter 2023 financial results, revealing that same-store sales had decreased 0.1%, operating profits decreased 24.2%, and EPS decreased 28.5%. On this news, Dollar General’s stock price fell $19.16, or 12.2%, to close at $138.50 per share on August 31, 2023, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Dollar General stores were chronically understaffed and suffering from logistical and inventory management problems which left stores with tens of millions of dollars’ worth of outdated and unwanted inventory, mispriced goods, and lost and damaged items; (2) that large backlogs of unsellable merchandise had built up at Dollar General’s stores, which inventory had not been timely written down due to understaffing and the Company’s failure to manage its inventory; (3) that the allotment of employee hours per store per week imposed by Dollar General management placed employees in virtually impossible situations where assigned tasks, including those necessary to effective store operations, could not be completed within the allotted time; (4) that Dollar General was systematically overcharging customers for items upon checkout above the listed price in violation of state laws, including state law violations identified by state regulators in Arizona, Louisiana, Mississippi, Missouri, North Carolina, and Ohio; (5) that Dollar General’s reported revenue and earnings during the Class Period were artificially inflated by defendants’ over-pricing scheme; (6) that Dollar General’s failure to manage store inventories and accurately price items upon checkout risked the loss of customers, lower sales, adverse regulatory actions, and reputational fallout; (7) that Dollar General was not on track to achieve the 4Q22 guidance provided to investors of 6% to 7% same-store sales growth or quarterly diluted EPS of $3.15 to $3.30, and was running more than one hundred million dollars behind the Company’s annual net sales guidance of 11% growth; and (8) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Dollar General securities during the Class Period, you may move the Court no later than January 26, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
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