Dollar General plunges on warning about financially constrained core customer

Dollar General shares dropped 26%, marking the steepest intraday decline in its history. This fall followed disappointing second-quarter earnings that missed analysts' expectations, revealing adjusted EPS of $1.70 and revenue of $10.21 billion. Same-store sales rose only 0.5%, below the predicted 2.07%.

The company lowered its full-year outlook, slashing EPS guidance from $6.80-$7.55 to $5.50-$6.20. CEO Todd Vasos acknowledged that consumers feel financially constrained, stating, "While we believe the softer sales trends are partially attributable to a core customer who feels financially constrained...". Analysts suggest a consumer downturn is likely worsening, raising concerns about the economic impact of current policies.