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Dollar General’s Customers Are ‘Financially Constrained.’ Its Stock Is Falling
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Main points
- Dollar General said it expects to end the fiscal year with modest sales growth.
- Shares of the company fell about 3% on Thursday, extending a difficult year for the stock.
- The CEO said the retailer is working to expand and improve its stores while its core consumers face financial pressures.
USD General (Director General) shares fell, extending the stock’s struggles this year after the discount retailer offered a tougher full-year outlook when it reported third-quarter results.
The company fine-tuned its forecast for this year, predicting same-store sales growth of 1.1% to 1.4% in 2024, instead of the 1% to 1.6% previously proposed. Dollar General also provided a more accurate forecast for total sales growth, predicting growth of 4.8% to 5.1% in 2024.
Dollar Tree’s parent company (DLTR) and Family Dollar also narrowed their scope Year-end forecast yesterday. Its shares fell on Thursday, while five below (five) climbs after reporting ‘solid’ Black Friday performance Outlook raised This year.
Dollar General shares recently fell more than 3% and are down about 45% this year.
CEO Todd Vasos said Dollar General is working hard to serve customers who are “cash-strapped.” He noted that the company plans to open more stores and renovate existing stores in 2025.
“We continue to improve store execution and customer experience,” he said.
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