Dollar Generalhas slashed its sales and profit reports for the full year, a move that suggests lower-income customers are struggling in this economy.
Shares of the company dropped 25% after the earnings report on Thursday.
Cost of goods sold rose more than net sales, up 5.9% to $7.15 billion. That pushed gross margin down to 29.96% from 31.08%.
For the full-year of fiscal 2024, the company cut its guidance ranges for EPS to $5.50 to $6.20 from $6.80 to $7.55, for net sales growth to 4.7% to 5.3% from 6% to 6.7% and for same-store sales growth to 1% to 1.6% from 2% to 2.7%.
Dollar General CEO Todd Vasos said “softer sales trends are partially attributable to a core customer who feels financially constrained.”
Imagine that, even after Kamala Harris cast the deciding vote for the Inflation Reduction Act. Strange how that worked out economically, isn’t it?
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