A sign hangs above a Dollar General store in Chicago on August 31, 2023.
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Dollar General Shares of the discount retailer tumbled Thursday after the discount retailer slashed its full-year sales and profit guidance, signaling that its lower-income customers are struggling in the current economy.
Shares of the retailer, which caters to more rural areas, fell 20% in pre-market trading following the earnings release.
The company now expects same-store sales to grow 1.0% to 1.6% in fiscal 2024, down from its previous forecast of 2% to 2.7% growth. Earnings per share this year are expected to be just $5.50 to $6.20, compared with the previous forecast of $6.80 to $7.55 per share.
Chief Executive Todd Vasos said in a statement: “While we believe the softer sales trends are due in part to core customers feeling financially constrained, we know the importance of controlling the things we can control.
Dollar General also reported disappointing latest quarterly numbers. Earnings of $1.70 per share were below LSEG’s forecast of $1.79 per share, while revenue of $10.21 billion was also below analysts’ expectations of $10.37 billion.
competitor dollar tree Sympathy fell, falling more than 6% in early trading.
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