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Important takeaways
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Dollar General reported second-quarter earnings below analysts’ estimates and lowered its full-year forecasts.
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CEO Todd Vasos said Dollar General sees a “core customer that feels financially constrained.”
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Shares of Dollar General fell in early trading Thursday following the news.
Dollar General (GD) shares fell Thursday morning after the discount retailer reported weaker-than-expected second-quarter earnings and cut its full-year revenue forecasts.
Dollar General reported $10.21 billion income for the second quarter, up 4% from the same time last year but below analysts’ estimates that same store sales rose only 0.5 percent. Dollar General also missed profit forecasts compiled by Visible Alpha, with net income down 20% from the previous year to $374.19 million.
Take steps to improve value, convenience
Dollar General CEO Todd Vasos said the company believes the “softer sales trends” it is experiencing can be partially explained by a “core customer feeling financially constrained.” He said the company is taking “decisive steps” to improve Dollar General’s value and convenience for customers.
The company lowered its outlook for the full fiscal year, projecting revenue growth of between 4.7% to 5.3%, down from a previous range of 6% to 6.7%, while same-store sales are expected to grow 1% to 1 .6%, down from 2% to 2.7% previously.
Dealer said it expects full year earnings per share (EPS) of $5.50 to $6.20, down from the previous range of $6.80 to $7.55. The new range is below analysts’ estimates of $7.12 and $7.55 per share that Dollar General reported for fiscal 2023.
Dollar General shares fell 28% to $89.01 in Thursday morning trading and have lost more than a third of their value since the start of the year.
Read the original article at Investopedia.