By Jessy Bains, Editor at LinkedIn News
Dollar General’s bleak earnings reportis a sign of the growing economic pain faced by many lower-income Americans. The discounter’s stock slumped 20% Thursday after the company cut its expected annual sales growth and forecast that earnings will drop 8% year-over-year. CEO Jeff Owen says the company’s customers — who typically make under $40,000 a year — are pulling back on basics and having to rely more on food banks, credit cards and their savings. He adds that smaller tax refunds and reduced SNAP benefits have “exacerbated the inflationary pressures they were already experiencing.”
- Rival discounter Dollar Tree’s latest earnings report and profit forecast also came in below analysts’ expectations.
Dollar General’s stock just had one of its worst days ever on Wall Street. And that spells trouble for Main Street.
Dollar General’s cash-strapped customers are turning to food banks, CEO says | Analysis
cnn.com • 3 min read
https://edition.cnn.com/2023/06/01/business/nightcap-dollar-general-economy/index.html?utm_medium=social&utm_source=CNNlinkedin&utm_term=link&utm_content=2023-06-01T20%3A45%3A05
The discount retailer’s shares fell 20% Thursday after the company slashed its earnings forecast for the year. Dollar General now expects sales to rise between 1% and 2% (down from an earlier forecast of about 3%) and expects earnings to fall 8% year over year.
That news is a giant red flag for the broader US economy.
Why? Read more analysis by CNN’s Allison Morrow: