: Dollar General stock dives after profit warning, as Winter Storm Elliott hurt sales

by | Feb 23, 2023 | Stock Market

Shares of Dollar General Corp. dove toward a nine-month low Thursday, after the discount retailer warned of a fourth-quarter profit miss, citing the negative effect of Winter Storm Elliott on December sales. The company said it now expects earnings per share for the quarter ended Feb. 2 of $2.91 to $2.96, below the previous guidance range of $3.15 to $3.30. Same-store sales, or sales from stores open at least a year, are now projected to rise 5.7% from a year ago, below previous expectations of 6%-to-7% growth.

The stock sank 5.0% in premarket trading, putting it on track to open at the lowest price seen during regular-session hours since May 25, 2022. “The company believes the lower-than-expected results are primarily attributable to lower-than-anticipated sales and higher-than-anticipated inventory damages, both of which were negatively impacted, to varying degrees, by Winter Storm Elliott during the fourth quarter,” the company said in a statement. “While both November and January same-store sales results were within the company’s expected guidance range for the fourth quarter at 6.7% and 6.5%, respectively, December’s same-store sales results were lower than anticipated at 4.5%, believed to be primarily as a result of the storm.” The company said it will provide full financial results for the fourth quarter on March 16. The company currently expects fi …

Article Attribution | Read More at Article Source

Share This