Core Viewpoint - Dollar General's shares fell significantly after the company reduced its sales and profit guidance for the full year, indicating financial struggles among its lower-income customer base [1][2]. Financial Performance - The company now anticipates fiscal 2024 same-store sales growth of 1.0% to 1.6%, a decrease from the previous forecast of 2% to 2.7% [1]. - Earnings per share (EPS) for the year is projected to be between $5.50 and $6.20, down from the earlier estimate of $6.80 to $7.55 [1]. - For the latest quarter, Dollar General reported an EPS of $1.70, which was below the LSEG estimate of $1.79 [2]. - Revenue for the quarter was $10.21 billion, falling short of the analyst expectation of $10.37 billion [2]. Market Reaction - Following the earnings report, Dollar General's shares dropped by 20% in premarket trading [1]. - Competitor Dollar Tree also experienced a decline, falling over 6% in early trading due to the negative sentiment surrounding Dollar General's performance [2].
Dollar General shares crater 20% as retailer cuts outlook, blaming 'financially constrained' customers