Dollar General Corp (NYSE:DG), the discount retailer, saw its shares slip 4% at the open after it issued weaker-than-expected second-quarter guidance.
Following the group’s first-quarter results, management revealed it expects sales to increase by around 2%, disappointing analysts, who had forecast a 2.25% rise in the three months.
Earnings per share forecasts of between US$1.70 and US$1.85 per share also came in behind Wall Street’s guidance of US$1.92.
Despite the guidance cut, the group maintained full-year guidance for both sales and profits, helped by a better-than-anticipated first quarter.
During the first three months of the company’s financial year, sales rose 2.4% ahead of Wall Street expectations of a 1.61% jump.
Per-share profits also outperformed analyst guidance coming in at US$1.65 compared to expectations of US$1.57.
"These results were driven by strong customer traffic growth and market share gains during the quarter," said CEO Todd Vasos.
Dollar General saw a 12.6% year-on-year surge in footfall during the quarter, analytics company Placer.ai revealed.