Why Dollar General Stock Dropped 13.3% This Week
Shares of Dollar General (NYSE: DG) are down 13.3% so far this week, according to S&P Global Market Intelligence. There wasn't any news from the discount retailer, but poorly received earnings reports from other retailers like Target and Walmart made investors sell off the entire sector, and Dollar General was not immune.
Earlier this week, both Target and Walmart reported their latest quarterly results. Their financials didn't look horrible, but both companies gave commentary about weakening consumer demand starting in March.
Specifically, Target said that it is battling a huge decline in demand for home goods, apparel, and hard lines (like furniture, appliances, tools, and electronics), combined with a gigantic increase in freight costs that are weighing on margins. It also doesn't help that it is trying to pass through inflationary costs from a lot of its suppliers.
Source Fool.com
