Why Dollar General Stock Plummeted to 6-Year Lows Today
Shares of retail chain Dollar General (NYSE: DG) plummeted on Thursday after the company reported financial results for the second quarter of 2024. As of this writing, Dollar General stock was down a hefty 30% and trading below $87 -- it hasn't been this low since late 2017.
Investors are likely reacting to Dollar General's lower full-year financial guidance. Management had expected to grow net sales by 6% to 6.7% in 2024 but now it believes it will only muster growth of 4.6% to 5.3%. For perspective, the company has annual sales of nearly $40 billion, so even a small percentage change in its growth rate is substantial.
Dollar General's profitability continues to take a hit as well. For perspective, the company had full-year earnings per share (EPS) of $10.68 in 2022. But today, management lowered its EPS guidance for 2024 to just $5.50 to $6.20 -- that's a big drop from profits just two years ago. And without any light at the end of the tunnel, investors are bailing on Dollar General stock, sending it to six-year lows.
Source Fool.com
