2 Red Flags for Dollar General in 2023
Dollar General's (NYSE: DG) shoppers are feeling more financially stressed. The value-focused retailer recently announced surprisingly weak Q2 earnings results that showed mounting demand pressure. Wall Street punished its shares in response, pushing them to a 40%-plus decline so far in 2023.
Investors might feel tempted to jump into the stock given Dollar General's strong market position and cheap valuation. However, there are at least two new reasons to feel cautious about this business today. Let's take a closer look.
In early June, management said the tough sales environment had been "more challenging than expected" after comparable-store sales growth slowed to below 2%. The situation has only worsened in the subsequent weeks.
Source Fool.com
