By James Myers, OAN Staff
Thursday, August 29, 2024 9:35 AM
Shares of discount retailer Dollar General Inc. fell sharply on Thursday after the company cut its full-year sales and profit outlook, a sign that lower-income customers are suffering in the worsening economy.
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The popular retailer's shares fell 25% in premarket trading after the earnings report.
The discount retailer now expects same-store sales to grow 1.0% to 1.6% in fiscal 2024, less than its previous outlook of a 2% to 2.7% increase. Additionally, full-year earnings per share are now expected to be in the range of just $5.50 to $6.20, compared with its previous outlook of $6.80 to $7.55 per share.
“While we believe our slowing sales are due in part to key customers feeling financially strained, we understand the importance of controlling what we can control,” CEO Todd Vasos said in a statement.
Dollar General reported disappointing numbers for its latest quarter, with earnings per share of $1.70 below the $1.79 per share estimate and sales of $10.21 billion below analyst expectations of $10.37 billion.
Rival Darati fell more than 9 percent in premarket trading.
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