Posted 12/7/2023, 4:55:00 PM
Dollar General Sees Ongoing Consumer Spending Pressures, Cautions Margins Could Remain Tight Through 2024
- Dollar General warns of continued constrained consumer spending into 2024, especially on non-essentials like clothes and home goods
- Company shares fell nearly 2% despite better-than-expected Q3 earnings and reaffirmed full-year guidance
- Gross margins fell 147 basis points to 29% due to rise in retail shrink (lost, damaged or stolen inventory)
- Company expects shrink-related headwinds to continue into 2024
- Same-store sales fell 1.3% in Q3, cushioned by stronger store traffic; better than expected 2.08% drop