A sign above a Dollar General store in Chicago on August 31, 2023.
Scott Olson Getty Images
General Dollar Shares tumbled Friday after the discount retailer slashed sales and profit guidance for the full year, suggesting lower-income customers are struggling in this economy.
Shares of the retailer, which caters more to rural areas, fell 25% in pre-market trade after the earnings report.
The company now expects fiscal 2024 same-store sales to rise 1.0% to 1.6%, lower than its previous outlook for an increase of 2% to 2.7%. Earnings per share for the year are expected to be just $5.50 to $6.20, compared to previous forecasts of $6.80 to $7.55 per share.
“While we believe the softer sales trend is partially caused by our core customers feeling financially constrained, we understand the importance of controlling what we can control,” CEO Todd Vasos said in a statement.
Dollar General also reported disappointing numbers for the last quarter. EPS of $1.70 per share came in below LSEG’s estimate of $1.79 per share, while revenue of $10.21 billion was also lower than analysts’ expectations of $10.37 billion.
competition Dollar Tree fell in sympathy, off more than 9% in premarket trading.
