Dollar General Lowers Annual Sales Forecast as Inflation Pressures Weigh on Customers
31 Agosto 2023 - 9:11AM
IH Market News
On Thursday, Dollar General (NYSE:DG) reduced its annual
forecast for same-store sales as it anticipates customers will
continue feeling the strain from persistently high inflation and
pull back on discretionary spending.
The company, headquartered in Goodlettsville, Tennessee, has
seen its shares fall about 36% this year, dropping by 14% in
pre-market trading.
According to Refinitiv IBES data, analysts had, on average,
expected a growth of 1.45%.
U.S. consumers, particularly those in lower and middle-income
groups, have been feeling the squeeze as cuts in government aid and
lower tax refunds compound inflationary pressures.
The company noted that gross profit as a percentage of net sales
dropped 126 basis points in the second quarter compared to the
previous year. This was driven by lower inventories, increased
markdowns, and inventory damages.
The discount retailer now foresees same-store sales for the
fiscal year 2023 to be in the range of a decline of 1% to growth of
1%, compared to its previous outlook of an increase of 1% to 2%.
Analysts had, on average, anticipated a growth of 1.45% according
to Refinitiv IBES data.
For the year, adjusted earnings per share are forecasted in the
range of $7.10 to $8.30, marking a decline of 34% to 22% from the
previously stable 8% decline.
Dollar General (NYSE:DG)
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