US discount store chain Dollar General is down 6.2 percent. And that despite better-than-expected figures. The devil, however, is in the company’s forecasts.
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In the second quarter, the company posted earnings per share of $2.69, compared to analysts’ expectations of $2.59. However, profit was 13.8 percent lower than in the same period last year. Revenue remained flat at $8.7 billion, but this figure was also stronger than the 8.6 billion that analysts had expected.
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Looking at the full year, Dollar General sees sales grow 0.5 to 1.5 percent compared to 2020, slightly ahead of the group’s latest forecast. Comparable sales would fall by 2.5 to 3.5 percent. Earnings per share would be between $9.60 and $10.20. However, the market had higher expectations.
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“Despite the difficult market conditions, including the uncertainties caused by the advancing delta variant, we have successfully adapted ourselves,” says CEO Todd Vasos. ‘We continue to believe in the underlying strength of our activities.’
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Despite the difficult market conditions, including the uncertainties caused by the advancing delta variant, we have successfully adapted ourselves.
