Dollar General shares tumbled on Thursday after the discount retailer slashed its sales and profit guidance for the full year, suggesting its lower-income customers are struggling in this economy. Shares of the retailer which caters to more rural areas tumbled 20% in premarket trading following the earnings report. The company now expects fiscal 2024 same-store sales to be up 1.0% to 1.6%, lower than prior outlook for a 2% to 2.7% increase. Earnings per share for the year is expected to be in the range of just $5.50 to $6.20, versus the prior forecast of $6.80 to $7.55 per share. https://www.cnbc.com/2024/08/29/dol...laming-financially-constrained-customers.html The US consumer is definitely struggling....
Its a 2 tiered economy. Walmart gains UMC customers that it never used to have before & CostCo keeps on rolling. Walmart is like a hybrid Amazon & CostCo now. They are the real Juggernaut. The low end customers are getting poorer regardless of a rise in minimum wage. Looks like they need an even higher minimum wage in order for DG to do better.
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Hm,you'd think it would be the other way around. Traditionally those dollar-type stores have flourished during economic down turns,when money is tight for lower income families.
What makes you think the co. is telling the truth? There could be many reasons why the co. did not meet expectations. e.g. theft do you think that the co. is going to say they have poor security.
Not sure if it would be in their best interest to lie about such things. Asset Protection/theft is a huge deal for all retail stores. I worked for Walmart for several years and the amount of money they lose every year to theft is more than the GDP of some small countries! Some of the stories I could tell about thieving,psycho customers would blow your mind.
It could be a lie by omission. Saying a true statement to mislead is also a certain type of a lie. Both statement could be true but the co. only chose to mention consumer reluctance to spend.
Dollar General is a "bargain basement" store. If people have stopped shopping there (for being low on money), just where do they shop? Or do they just "do without" because they can barely afford anything at all?? What might that say about our economy in general?