.August 30, 2024 10:09 AM

Dollar General (NYSE:DG) saw its shares drop by over 32% following the release of disappointing second-quarter earnings and revenue figures. The company reported earnings per share of $1.70, missing the $1.80 estimate, with revenue at $10.21 billion, below the expected $10.38 billion. Same-store sales increased by 0.5% year-over-year.

In response to the poor performance, Dollar General slashed its full-year earnings forecast to between $5.50 and $6.20 per share, down from the previous guidance of $6.80 to $7.55. Net sales growth forecast was also revised down to 4.7%-5.3% from 6.0%-6.7%.

The company’s gross profit margin dropped to 30.0%, with operating profit falling by 20.6% to $550.0 million compared to the same quarter last year. Despite these challenges, Dollar General plans to open 730 new stores and remodel 1,620 existing locations this fiscal year.

Additionally, Dollar General announced a quarterly cash dividend of $0.59 per share as it navigates through the impact of the disappointing quarter.