Dollar General shares crater 20% as retailer cuts outlook, blaming ‘financially constrained’ customers
From CNBC: 2024-08-29 07:42:35
Dollar General’s shares dropped 20% after cutting sales and profit guidance due to struggling lower-income customers in the economy. Fiscal 2024 same-store sales expected up 1.0% to 1.6% versus prior 2% to 2.7%. Earnings per share forecast lowered to $5.50 to $6.20 from $6.80 to $7.55, disappointing quarter results reported.
CEO Todd Vasos attributed softer sales partially to financially constrained core customers. Dollar General’s latest quarter earnings per share at $1.70 below LSEG estimate of $1.79, revenue of $10.21 billion fell short of analyst projection. Competitor Dollar Tree also dropping by over 6% in early trading as a result.