Dollar General shopping carts are seen outside a store in Mount Rainier, Maryland, U.S., June 1, 2021.
The Goodlettsville, Tennessee-based retailer has fallen short of the average analyst forecast for four straight quarters, and on Thursday cut its annual profit and sales targets for the second time this year.
The quarter "marks the fourth consecutive guide down for Dollar General, which admittedly creates further uncertainty if we are hitting the bottom yet," said Raymond James analyst Bobby Griffin.
"While we expect traffic trends to improve, we do not expect positive traffic until the fourth quarter," CFO Kelly Dilts said.
To better compete with rival Dollar Tree and bigger grocer Walmart (WMT.N), Dollar General has been investing to keep prices low for its everyday staples, improve merchandise mix and increase wages.
Persons:
Erin Scott, Raymond James, Bobby Griffin, Kelly Dilts, Savyata Mishra, Pooja Desai
Organizations:
REUTERS, Dollar, Walmart, Thomson
Locations:
Mount Rainier , Maryland, U.S, , Tennessee, Bengaluru