Shares of the discount retailer, Dollar General Corp. (NYSE: DG) were on a downslide at the time of publishing in pre-market trading on Thursday after the retailer posted sales of $9.3 billion in Q1, up by 6.8% year-over-year but fell short of analysts’ expectations of $9.47 billion.
Diluted earnings declined by 2.9% year-over-year in the first quarter to $2.34 per share versus analysts’ expectations of $2.38 per share.
The retailer has declared a quarterly cash dividend of $0.59 per share on its common stock, payable on or before July 25, to shareholders of record on July 11, 2023.
Looking forward, the management anticipates FY23 net sales to grow in the range of around 3.5% to 5.0%, compared to its prior expectation of 5.5% to 6%. Diluted EPS in FY23 is projected to be either flat or decline by 8% year-over-year versus its previous expectation of a rise of 4% to 6%.
The company stated, “The macroeconomic environment is more challenging than the Company had previously anticipated, which the Company believes is having a significant impact on customers’ spending levels and behaviors.”
Analysts are cautiously optimistic about DG stock with a Moderate Buy consensus rating based on 10 Buys, four Holds, and one Sell.
