stock was falling Thursday after the discount retailer slashed guidance amid softer sales trends and as it plans to increase investments to speed up inventory reduction efforts.
(ticker: GD) missed earnings expectations in the fiscal second quarter, reporting earnings of $2.13 a share on revenue of $9.8 billion. Analysts surveyed by FactSet were expecting the retailer to report earnings of $2.47 a share on sales of $9.9 billion.
Same store sales decreased 0.1% compared to the first quarter of 2022, driven by a decline in customer traffic.
“While we are not satisfied with our overall financial results, we made significant progress in the second quarter improving execution in our supply chain and our stores, as well as reducing our inventory growth rate and further strengthening our price position,” Chief Executive Jeff Owen said in the earnings release.
slashed its fiscal 2023 outlook as it takes actions to accelerate the pace of its inventory reduction efforts and makes additional investments in areas like retail labor. The retailer also cited softer sales trends.
The company now anticipates net sales growth to be between 1.3% to 3.3% in fiscal 2023, compared to previous guidance of 3.3% to 5%. Management also expects earnings to decline between a range of 34% to 22% in the year, compared to previous guidance of an 8% drop to flat growth.
Shares of Dollar General were sinking 15% to $134.79 in premarket trading Thursday. Coming into the session, the stock has dropped 36% in 2023.
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