Dollar General Stock Drops 25% as Company Attributes Decline to Economic Challenges – One America News Network
OAN Staff James Meyers
9:35 AM – Thursday, August 29, 2024
Dollar General stores plummeted on Thursday after the discount retailer cut its sales and profit guidance for the entire year, alluding to the fact that lower-income customers are struggling with the economy.
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Shares of the popular retailer dropped 25% in premarket trading after the earnings report.
The discounted store expects fiscal 2024 same-store sales to be up 1.0% to 1.6%, which is smaller than the prior outlook of 2% to 2.7% increase. Additionally, earnings per share for the year are expected to be in the range of just $5.50 to $6.20, compared to the prior expectations of $6.80 to $7.55 per share.
“While we believe the softer sales trends are partially attributable to a core customer who feels financially constrained, we know the importance of controlling what we can control,” said CEO Todd Vasos in a statement.
Dollar General reported disappointing numbers for the latest number for the latest quarter. Earnings per share of $1.70 came in below an estimate of $1.79 per share, with the revenue of $10.21 billion fell lower than the analyst expectation of $10.37 billion.
Competitor Dollar Tee fell off by over 9% in premarket trading.
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