Why Dollar General Stock Is Down Nearly 30% Today #DolarNews

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• Dollar General reported second-quarter earnings below analysts’ estimates and lowered its projections for the full year.

• CEO Todd Vasos said Dollar General is seeing a “core customer who feels financially constrained.”

• Shares of Dollar General plunged Thursday following the news.

Dollar General (DG) shares tumbled Thursday, falling nearly 30% after the discount retailer reported weaker-than-expected earnings for the second quarter lowered its projections for full-year revenue.

Dollar General reported $10.21 billion in revenue for the second quarter, up 4% from the same time last year but below analysts’ estimates as same store sales rose just 0.5%. Dollar General also missed profit projections compiled by Visible Alpha, with net income down 20% year-over-year at $374.19 million.

Dollar General CEO Todd Vasos said the company believes the “softer sales trends” it’s experiencing can be partially explained by a “core customer who feels financially constrained.” He said the company is taking “decisive action” 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.

The retailer said it anticipates 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 analyst estimates of $7.12 and the $7.55 per share Dollar General reported for fiscal 2023.

Dollar General’s shares are down some 35% this year.

UPDATE: This story has been updated to reflect new share-price information.

Read the original article on Investopedia.