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{"id":88234,"date":"2024-08-29T13:54:00","date_gmt":"2024-08-29T13:54:00","guid":{"rendered":"https:\/\/financeworld24.com\/dollar-general-shares-crater-20-as-retailer-cuts-outlook-blaming-financially-constrained-customers\/"},"modified":"2024-08-29T13:54:00","modified_gmt":"2024-08-29T13:54:00","slug":"dollar-general-shares-crater-20-as-retailer-cuts-outlook-blaming-financially-constrained-customers","status":"publish","type":"post","link":"https:\/\/financeworld24.com\/dollar-general-shares-crater-20-as-retailer-cuts-outlook-blaming-financially-constrained-customers\/","title":{"rendered":"Dollar General shares crater 20% as retailer cuts outlook, blaming ‘financially constrained’ customers"},"content":{"rendered":"
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A sign hangs above a Dollar General store in Chicago on Aug. 31, 2023.<\/p>\n

Scott Olson | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Dollar General<\/a><\/span><\/span><\/span> shares tumbled Thursday after the discount retailer slashed its sales and profit guidance for the full year, suggesting its lower-income customers are struggling in this economy.<\/p>\n

Shares of the retailer, which caters to more rural areas, tumbled 25% after the earnings report.<\/p>\n

The company now expects fiscal 2024 same-store sales to be up 1.0% to 1.6%, lower than its prior outlook for a 2% to 2.7% increase. Earnings per share for the year are expected to be in the range of just $5.50 to $6.20, versus the prior forecast of $6.80 to $7.55 per share.<\/p>\n

“While we believe the softer sales trends are partially attributable to a core customer who feels financially constrained, we know the importance of controlling what we can control,” said CEO Todd Vasos in a statement.<\/p>\n

However, he also acknowledged that the company has more work to do. Dollar General has said that it needs to improve its stores and how it handles inventory to curb losses.<\/p>\n

Here’s how Dollar General did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:<\/p>\n