{"id":2018220,"date":"2023-08-31T14:57:04","date_gmt":"2023-08-31T18:57:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dollar-general-shares-drop-due-to-consumer-spending-and-theft\/"},"modified":"2023-08-31T15:02:08","modified_gmt":"2023-08-31T19:02:08","slug":"dollar-general-shares-drop-due-to-consumer-spending-and-theft","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dollar-general-shares-drop-due-to-consumer-spending-and-theft\/","title":{"rendered":"Dollar General&#8217;s shares decline due to reduced consumer spending and theft."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdollar-general-shares-drop-due-to-consumer-spending-and-theft%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2018220&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Dollar General\u2063 Corp. Shares Drop After Disappointing \u200cEarnings Report<\/h2>\n<p>Dollar General Corp. shares took a hit, dropping 12 percent on Monday\u200c afternoon \u200cfollowing\u2063 the release of a weaker-than-anticipated earnings report \u200cfor the second quarter. The company \u200balso issued a warning about consumer trends and theft, causing concern\u2062 among investors.<\/p>\n<p>The company \u2062revised its net sales growth expectations,\u2062 projecting a\u2064 range\u2063 of \u200d1.3 percent to 3.3 percent, down from \u200dthe previous estimate of 3.5 percent\u2062 to 5 percent. Additionally, Dollar General\u2064 expects same-store \u2063sales growth\u2062 for \u2064fiscal\u2062 2023 to \u200crange from a 1 \u2064percent decline to 1 percent growth, a \u2062decrease from previous expectations.<\/p>\n<blockquote>\n<h3>Concerns About Gross Profit and Consumer \u2062Trends<\/h3>\n<\/blockquote>\n<p>The \u2063company&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ariz-attorney-general-seeks-temporary-restraining-order-on-bidens-vaccine-mandate\/\" title=\"Ariz. Attorney General seeks temporary restraining order on Biden\u2019s vaccine mandate\">news release stated<\/a>, &#8220;Gross \u2062profit as a percentage of net sales was\u2062 31.1 \u200dpercent in the second quarter of 2023 compared to 32.3 percent in the\u2062 second quarter of 2022, a decrease \u200cof \u2062126 basis points. This <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/despite-privacy-and-censorship-concerns-chinese-backed-tiktok-owner-doubles-revenue-to-34-billion-with-1-9-billion-users\/\" title=\"Despite Privacy and Censorship Concerns, Chinese-Backed TikTok Owner Doubles Revenue To  Billion, With 1.9 Billion Users\">gross profit<\/a> rate decrease\u2062 was primarily attributable to\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dollar-general-expecting-100-million-loss-due-to-theft\/\" title=\"Dollar General anticipates 0M loss from theft.\">lower inventory markups<\/a> and\u2064 increased shrink, markdowns, \u2062and inventory \u2063damages, as well as a greater proportion of sales\u200b coming from the \u200bconsumables\u200d category, which generally has a lower gross profit rate than other product categories.&#8221;<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/opinion\/dollar-overreach-and-the-brics-expansion-5481564\">&#8216;Dollar Overreach&#8217; and \u2064the BRICS Expansion<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/30\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/opinion\/dollar-overreach-and-the-brics-expansion-5481564\"><\/a><\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/article\/euro-eases-vs-dollar-as-traders-await-further-clues-on-fed-ecb-path-5483169\">Euro Eases Versus \u200dDollar as Traders Await Further Clues on \u2064Fed, ECB Path<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/30\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/article\/euro-eases-vs-dollar-as-traders-await-further-clues-on-fed-ecb-path-5483169\"><\/a><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<h3>Rising Concerns About Theft and Shoplifting<\/h3>\n<\/blockquote>\n<p>The\u2063 term &#8220;shrink&#8221; refers to inventory loss\u2064 due to causes other \u2064than sales, \u2062such as theft or\u2063 shoplifting. Retail\u2063 groups have reported\u2063 a significant increase in theft in recent months, which has impacted Dollar\u200d General&#8217;s gross profit\u200b and overall performance.<\/p>\n<p>The company also reported a decrease in same-store sales by 0.1 percent, lower than previous\u200c expectations. Operating profit experienced a significant decline of\u200b 24.2 percent, amounting to\u200c $692.3 million, and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/upbeat-ford-affirms-full-year-profit-despite-surging-costs\/\" title=\"Upbeat Ford affirms full-year profit despite surging costs\">diluted earnings<\/a> per share \u200ddropped by 28.5 percent to $2.13 per share.<\/p>\n<p>Despite the disappointing results,\u200d Dollar General&#8217;s CEO, Jeff Owen, expressed optimism about the \u200ccompany&#8217;s progress \u200cin <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dollar-general-shares-drop-due-to-consumer-spending-and-theft\/\" title=\"Dollar General's shares decline due to reduced consumer spending and theft.\">improving supply \u2062chain \u2063execution<\/a>, store operations, and inventory management. He stated, &#8220;We are now taking further\u2063 actions and making additional investments to accelerate our \u200bprogress and ultimately serve our customers\u200d even better. These investments will strengthen our foundation as we move into 2024 and focus \u200don \u200ddriving sustainable growth and creating long-term shareholder value.&#8221;<\/p>\n<div class=\"shortcode\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<\/div>\n<p>In a call with analysts, \u2064Mr. Owen highlighted that consumers\u2063 are being cautious with their spending, prioritizing essential items over discretionary purchases. To \u200dadapt, Dollar General has \u200dimplemented price reductions on key items.<\/p>\n<p>Retail analyst\u2064 Neil Saunders noted that Americans are scaling\u2064 back on shopping due to\u2062 high inflation. He explained,\u200b &#8220;Dollar General&#8217;s core customers are feeling the acute pressure \u2062of the cost-of-living crisis.&#8221; Lower-income shoppers are cutting back on non-essential\u200c purchases, especially after the reduction \u2063in SNAP\u2064 payments following the\u2063 end \u200bof temporary pandemic \u2062benefits.<\/p>\n<p>Jefferies analyst Corey Tarlowe described Dollar General&#8217;s \u2062results as soft but emphasized the company&#8217;s\u200c resilience. He \u200bstated, \u200c&#8221;[Dollar General] stays well-positioned due to its high mix of consumables, private label expansion, and organic growth\u200b opportunities.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dollar General Corp. shares fell 12% on Monday due to a disappointing Q2 earnings report. The company also expressed concerns about consumer trends and theft, revising its net sales growth forecast to 1.3-3.3%, down from the previous 3.5-5% expectation.<\/p>\n","protected":false},"author":58,"featured_media":2018221,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2018220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2018220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/58"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2018220"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2018220\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2018221"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2018220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2018220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2018220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}