Dive Brief:
- Dollar General appointed finance veteran Donny Lau, a former executive of the discount retail giant, to become its CFO effective Oct. 20, the company said Wednesday.
- Lau, who most recently served as CFO of restaurant chain Zaxby’s, is returning to Dollar General after a nearly three-year absence. He will replace Kelly Dilts, who is set to leave on Aug. 28 to take the finance helm at Nordstrom. Dollar General CEO Todd Vasos will serve as the company’s principal financial officer in the interim, according to a press release.
- “Donny’s deep understanding of our business, culture and values and his impressive financial leadership and experience uniquely position him to drive excellence and create long-term shareholder value,” Vasos said in the release.
Dive Insight:
Lau, 46, joined Zaxby’s as CFO in 2023. Prior to that, he served in various leadership positions at Dollar General, including chief strategy officer. He also previously did a stint at Yum! Brands, serving as head of financial planning and analysis, among other roles.
Lau will receive an annual base salary of $800,000 in his new role, according to a securities filing.
In a Thursday client’s note, Telsey Advisory Group analysts said they expect Lau to adjust quickly and succeed in his new post given his history with Dollar General and “deep understanding of the culture, strategy, and finance department.”
Dollar General made the announcement in advance of the Aug. 28 scheduled release its second quarter earnings report.
The discount retailer is expected to post quarterly earnings of $1.56 per share, representing a year-over-year decline of 8.2%, according to a Zacks Equity Research report. Revenues are expected to be $10.67 billion, up 4.5% from the year-earlier period, the report said.
For its first quarter, the retailer reported net sales grew 5.3% year over year to $10.4 billion, while net income rose nearly 8% to $392 million.
Lau will take Dollar General’s top finance seat as the company is scrambling to keep prices low amid tariffs. In late June, the retailer announced that it was marking down more than 1,000 items through Labor Day, including products across food, health and wellness, household cleaning and personal care, sister publication Retail Dive reported.
During a June earnings call, Vasos said the company was “working diligently” to mitigate the impact of tariffs on its business, including working with vendor partners to reduce costs.
“While the tariff landscape remains dynamic and uncertain, we expect tariffs to result in some price increases as a last resort, though we intend to work to minimize them as much as possible,” Vasos said.