Dollar General's stock tumbles after retailer misses earnings estimates and lowers guidance

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Dollar General's stock tanked after quarterly earnings fell short and the retailer lowered its guidance by a wide margin.

Dollar General Corp.’s stock tumbled 13.9% in premarket trade Thursday, after the discount retailer posted weaker-than-expected second-quarter earnings and lowered its guidance.

The sales increase was mostly due to positive contributions from new stores, which were partially offset by a decline in same-store sales and store closures. Same-store sales were hurt by lower traffic, partly offset by higher average transaction amount. Gross profit as a percentage o sales was 31.4%, down from 32.3% a year ago, for a 126 basis point decline. That was mostly due to lower inventory markups and increased shrink, markdowns, and inventory damages, as well as a greater proportion of sales coming from the consumables category, which has a lower gross profit rate than other product categories.

 

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Dollar General’s stock tumbles premarket after earnings miss and lowered guidanceDollar General Corp.’s stock tumbled 13.7% in premarket trade Thursday, after the discount retailer posted weaker-than-expected second-quarter earnings and...
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