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Dollar General flags profit margin squeeze from holiday discounts, shares fall

Dollar General Corp has revised its annual profit forecast downwards due to unexpected expenses related to Hurricane Idalia, which struck Florida in late August. The company now anticipates a profit of $7.10 to $7.60 per share for the year, a decrease from the previously projected $7.50 to $8.20 per share. This adjustment comes amidst other challenges like reduced consumer spending on non-essential items and increased competition from larger retailers like Walmart and Target. Additionally, Dollar General has been dealing with issues such as inventory shrinkage and the need for more staff to manage in-store operations effectively. The company also reported a slight decrease in same-store sales for the third quarter, reflecting the broader economic pressures affecting discount retailers.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/retail-consumer/dollar-general-cuts-annual-profit-forecast-hurricane-related-expenses-2024-12-05/ ]