Dollar General Corp. rose sharply in late trading after announcing former Chief Executive Officer Todd Vasos is returning to lead the discount retailer, replacing a successor who lasted less than year.
Vasos, who served as CEO from 2015 to 2022, assumed the role once again on Thursday, while Jeff Owen, who became CEO in November, was let go from the company and resigned from the board. Vasos has agreed to lead Dollar General for the “foreseeable future,” the company said.
“At this time, the board has determined that a change in leadership is necessary to restore stability and confidence in the company moving forward,” Dollar General wrote in a statement.
During Vasos’ previous seven-year stint as CEO, Dollar General shares grew by more than 230%, annual revenue doubled and he oversaw the addition of 7,000 stores. Under Owen, shares have fallen by 60%.
Investors welcomed the move, sending Dollar General shares up 8% at 5:33 p.m. in extended trading in New York.
Dollar General also revised its guidance for the full year, with net sales expected to grow 1.5% to 2.5% — narrower than the previous range of 1.3% to 3.3%.
Vasos’ return mirrors that of Walt Disney Co. CEO Bob Iger, who left the entertainment giant as executive chairman in 2021 but supplanted successor Bob Chapek as CEO in November.
While dollar stores across the US have been largely resilient as high inflation has left consumers looking for deals, Dollar General has struggled with both store safety and employee retention in recent years.
In 2022, Dollar General became the first major retailer deemed a “severe violator” of federal workplace safety law, and has failed hundreds of government inspections. A report this month from Harvard’s Shift Project showed that most hourly employees at the company don’t have access to paid sick leave.
Meanwhile, the business performance has also notably worsened. On Aug. 31, the company slashed its profit forecast for a second straight quarter amid signs the retailer was losing ground to its rivals.
(Updates with additional context, chart.)