73.89
0.92%
0.615
After Hours:
73.92
0.035
+0.05%
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Why is Dollar General Corp (DG) Stock down?
We've noticed a 5.38% decline in Dollar General Corp (DG) stock during the 2024-11-20 trading session. While this could be attributed to normal volatility or various internal and external factors, please be aware that we are actively monitoring the situation, and we'll provide timely updates as soon as possible!
14 Mar, 2024:
Dollar General (DG) stock dropped by 5.13% as the market reacted to the company's lackluster guidance for the coming year. Here are the key details:
- Fiscal Year 2023 Performance: In fiscal 2023, which ended on Feb. 2, Dollar General experienced modest growth, with net sales increasing by 2% to almost $39 billion. This growth was supported by a 0.2% increase in same-store sales, a significant decrease from the 4.3% growth seen in fiscal 2022. Despite a surge in sales early in the COVID-19 pandemic, sales have mostly plateaued since then.
- Inventory Challenges and Lower Profits: Dollar General's management had anticipated continued sales growth, leading to an overstocked inventory. The excess inventory resulted in lower profits, with the company reporting full-year net income of $1.7 billion compared to $2.4 billion in fiscal 2022. The slow sales and lower profits in 2023 have contributed to Dollar General's stock remaining more than 40% below its all-time high.
- Guidance for Fiscal Year 2024: For fiscal 2024, Dollar General expects to grow net sales by at least 6% but anticipates that its profit margins will continue to be under pressure. The company is guiding for earnings per share (EPS) of $6.80 to $7.55, compared to $7.55 per share earned in fiscal 2023. This guidance suggests that EPS may remain flat in a best-case scenario, despite anticipated sales growth.
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