Dollar General sinks after cutting outlook for profit and sales; reports big Q2 miss By Investing.com
© Reuters. Dollar General (DG) sinks after cutting outlook for profit and sales; Reports big Q2 miss
Dollar General (NYSE:) announced worse-than-expected Q2 earnings, which prompted the retailer to cut its forecast for profit and sales.
DG an EPS of $2.13. This fell short of the analyst estimate of $2.48. The company’s Q2 revenue stood at $9.8 billion, also below the consensus estimate of $9.93B.
Shares tumbled 14% in early Thursday trade.
In terms of comparable sales, Dollar General experienced a slight decline of -0.1% compared to a growth of +4.6% year-over-year. This result was also lower than the estimated growth of +0.9%.
The gross margin for the quarter was 31.1%, a decrease from the previous year’s 32.3% and below the estimated margin of 31.7%.
Looking ahead, Dollar General slashed its FY2024 guidance. The company expects an EPS in the range of $7.10 to $8.30, much worse than the consensus estimate of $10.01.
The new profit outlook implies a decline of 34-22% YoY, while the prior guidance was calling for a decline of 8% to flat growth.
Net sales growth is now expected in the range of +1.3% to +3.3%, compared to the previous expectation of +3.5-5.0%.
