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Dollar General's Customers Are 'Financially Constrained.' Its Stock Is Falling
Key Takeaways
Dollar General ( DG ) shares dropped, extending a rough year for the stock, after the discount retailer offered a tighter full-year outlook while reporting its third-quarter results.
The company fine-tuned its forecast for the year, projecting 2024 same-store sales growth of 1.1% to 1.4%, rather than a previously offered 1% to 1.6%. Dollar General also offered a more precise total sales growth projection, predicting it would grow 4.8% to 5.1% in 2024.
The parent company of Dollar Tree ( DLTR ) and Family Dollar also narrowed its end-of-year projections yesterday. Its shares fell Thursday, while shares of Five Below ( FIVE ) climbed after it reported a "solid" Black Friday performance and raised its outlook for the year.
Dollar General shares were recently down more than 3%, leaving them off some 45% this year.
CEO Todd Vasos said Dollar General was working to serve a clientele that is “financially constrained.” He noted the company planned to open more stores and revamp existing ones in 2025.
"We have continued to improve our execution and the customer experience in our stores," he said.
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