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A sign hangs above a Dollar General store in Chicago on August 31, 2023.
Scott Olson | Getty Images
Dollar General Amazon Web Services Inc. shares fell on Thursday after the retailer cut its full-year sales and profit forecasts, suggesting its lower-income customers are struggling in this economy.
Shares of the retailer, which serves rural areas, fell 25% in premarket trading after the earnings report.
The company now expects comparable-store sales in fiscal 2024 to rise 1.0% to 1.6%, down from a previous forecast of 2% to 2.7%. Earnings per share for the year are expected to be in the range of $5.50 to $6.20, down from a previous forecast of $6.80 to $7.55 per share.
“While we believe the weaker sales trends are due in part to a core customer feeling financially distressed, we recognize the importance of controlling what we can control,” CEO Todd Vasos said in a statement.
Dollar General also reported disappointing numbers for its fourth quarter. Earnings per share of $1.70 fell short of LSEG’s estimate of $1.79 per share, while revenue of $10.21 billion also fell short of analysts’ expectations of $10.37 billion.
competitor dollar tree Tadawul shares fell more than 9% in pre-market trading.
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