Dollar General: Why Investors Need to Be Worried About This 95% Increase
Dollar General (NYSE: DG) operates 19,400 stores that focus on selling low-priced items it thinks customers need on a regular basis. The basic idea is to be convenient and cheap so people keep coming back to shop.
Like every business, Dollar General's performance ebbs and flows along with the broader economy, and from a big-picture perspective, the second quarter wasn't too bad. But a look at one financial metric, which was up 95% year over year, shows there is some potential trouble for the discount retailer.
If you look at the top line of Dollar General's income statement for the second quarter, you'd think the company was doing OK. Sales increased 3.9% year over year. That's not great, but it's not terrible either. The growth was largely driven by new stores. This point comes into focus when you see that same-store sales, which are sales at locations that have been open for a year or more, were down by 0.1% year over year.
Source Fool.com
