Even dollar stores are getting slammed by the retail theft crisis.
Dollar Generals shares tanked Thursday after the discounter provided a bleak outlook for the rest of the year because of rising thefts and weak consumer demand at its 19,000 stores nationwide.
The Tennessee-based company warned Wall Street that profits may plunge by as much as 34% compared to its previous forecast for an 8% decline to flat growth as cut its full-year profit and sales targets for the second time this year.
“Our revised guide is really a function of the slower transactions that we’re seeing, and higher expected shrink,” Dollar General CFO Kelly Dilts said on a call with analysts after the company reported quarterly earnings that fell short of Wall Street estimates.
The reference to “shrink” — an industry term for stolen or damaged goods — follows a troubling trend cited by other major retailers who have blamed the scourge of organized retail theft for impacting their bottom line.
Target has said it expects to lose $500 million because of theft at its stores.
Dollar Tree said in May that it would need to raise prices in some regions because of persistent shoplifting.
Dollar General’s gross profit as a percentage of net sales fell 126 basis points in the quarter as retail shrink worsened. It flagged $100 million in additional shrink headwinds since its last earnings call in June.
CEO Jeff Owen did not elaborate on the extent of the theft, instead pointing to still-stubborn inflation for shoppers feeling “financially constrained.
Dollar Generals core customers are feeling the acute pressure of the cost-of-living-crisis, echoed Neil Saunders, retail analyst and managing director at GlobalData, in a report Thursday.
Dollar General lowered its same store sales guidance to a decline of about 1% and 1% increase compared to its previous forecast of a 1% to 2% increase.
The companys comparable sales dropped by 1% in the second quarter ended Aug. 4 and the company expects a pileup of inventory to be a drag on its earnings for the rest of the year as it slashes prices on items that havent been selling.
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.
The stock nosedived down more than 12% Thursday to close at $138.59.
It has tracked a nearly three-and-a-half-year low, slumping as much as 18.2% to hit $128.96 — making it one of the worst performers on the S&P 500 index this year.
As inflation continued to batter shoppers this year, more customers flocked to Dollar General and its rival Dollar Tree among other big discounters.
But food and other essential items are less profitable for those stores as profit margins on food are anemic.
While we are not satisfied with our overall financial results, we made significant progress in the second quarter improving execution in our supply chain and our stores, as well as reducing our inventory growth rate and further strengthening our price position, Owen said in a statement.
The 2025 Little League World Series is underway, with some of the best young players around the country competing in Williamsport — all with the hopes of eventually making it to the major leagues one day.
And a few of them will make it … as evidenced by all the Little League alumni in Major League Baseball today.
This year’s MLB Little League Classic between the the Seattle Mariners and New York Mets will feature a number of MLB players who have played little league baseball in one way or another, either with local teams in their home countries or with Little League specifically. In fact, Seattle manager Dan Wilson played in the 1981 Little League Baseball World Series with Barrington (Illinois) Little League.
As the Mariners and Mets face off at historic Bowman Field in Williamsport on Aug. 17 — which you can watch on ESPN’s “Sunday Night Baseball” broadcast at 7 p.m. ET — let’s take a look at “then” and “now” photos of notable players on each team that played little league.
The private equity firm set up by Jared Kushner, President Donald Trump’s son-in-law, is to take a stake in OakNorth, the British-based lender which has set its sights on a rapid expansion in the US.
Sky News has learnt that Affinity Partners, which has amassed billions of dollars in assets under management, has signed a deal to acquire an 8% stake in OakNorth.
The deal is expected to be concluded in the coming weeks, industry sources said on Friday.
Mr Kushner established Affinity Partners in 2021 after leaving his role as an adviser to President Trump during his first term in the White House.
He is married to Ivanka, the president’s daughter.
Affinity manages money for a range of investors including the sovereign wealth funds of Qatar and Saudi Arabia.
Insiders said that Affinity Partners was buying the OakNorth stake from an unidentified existing investor in the digital bank.
More from Money
The valuation at which the transaction was taking place was unclear, although OakNorth was valued at $2.8bn in its most recent funding round in 2019.
OakNorth, which was founded by Rishi Khosla, is targeting substantial loan growth in the US in the coming years.
Earlier this year, it agreed to buy Community Unity Bank (CUB), which is based in Birmingham, Michigan, in an all-share deal.
The transaction is awaiting regulatory approval.
OakNorth began lending in the US in 2023 and has since made roughly $1.3bn of loans.
The bank is chaired by the former City watchdog chair Lord Turner, and is among a group of digital-only British banks which are expected to explore stock market listings in the next few years.
Monzo, Revolut and Starling Bank are all likely to float by the end of 2028, although London is far from certain to be the destination for all of them.
Similarly, OakNorth’s ambition to grow its US presence means it is likely to be advised by bankers that New York is a more logical listing venue for the business.
Launched in 2015, the bank is among a group of lenders founded after the 2008 financial crisis.
Its UK clients include F1 Arcade and Ultimate Performance, both of which have themselves expanded into the US market.
Its existing backers include the giant Japanese investor SoftBank, GIC, the Singaporean state fund, and Toscafund, the London-based asset management firm.
Since its launch, OakNorth has lent around £12.5bn and boasts an industry-leading loan default ratio.
Last year, it paid out just over £30m to shareholders in its maiden dividend payment.
OakNorth has been growing rapidly, saying this year that it had recorded pre-tax profits of £214.8m in 2024, up from £187.3m the previous year.
It made more than £2.1bn of new loans last year.
On Friday, a spokesperson for OakNorth declined to comment.
It was made in a rare interview with one of the key commanders of Ukraine’s drone forces.
We met in an undisclosed location in woods outside Kyiv. Brigadier General Yuriy Shchygol is a wanted man.
There is a quiet, understated but steely resolve about this man hunted by Russia. His eyes are piercing and he speaks with precision and determination.
Image: Brigadier General Yuriy Shchygol has been in charge of several devastating drone strikes against Russia
His drone units have done billions of dollars of damage to Russia’s economy and their range and potency is increasing exponentially.
More on Russia
Related Topics:
“Operations”, he said euphemistically, “will develop if Russia refuses a just peace and stays on Ukrainian territory”.
“Initially, we had a few drones a month, capable of striking targets 100 to 250 kilometres away. Today, we have drones capable of flying 3,000 to 4,000 kilometres, and that’s not the limit, it’s constrained only by fuel supply, which can be increased”.
Image: A Ukrainian drone struck this building in Kursk, Russia, on Friday. Pic: Kursk regional government/AP
Image: Cars were also damaged in the strike. Pic: Kursk regional government/AP
His teams had just carried off one of their most complicated and most devastating strikes yet. A massive fire was raging in an oil refinery in Volgograd, or Stalingrad as it was once called.
“If the refinery is completely destroyed, it will be one of the largest operations conducted,” Brigadier General Shchygol said. “There have been other major targets too, in Saratov and Akhtubinsk. Those refineries are now either non-operational or functioning at only 5% of capacity.”
Oil is potentially Vladimir Putin’s Achilles heel. So much of his economy and war effort is dependent on it. Donald Trump could cripple Russia tomorrow if he sanctioned it but so has appeared reluctant to do so, a source of constant frustration for the Ukrainians.
Military activity on both sides has increased as diplomacy has picked up pace.
Please use Chrome browser for a more accessible video player
1:35
Moscow correspondent: What’s Putin’s strategy?
Follow The World
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
In another long-range attack, Ukraine says it hit the port of Olya in Russia’s Astrakhan region, striking a ship loaded with drone parts and ammunition sent from Iran.
But on the ground, Russian forces have made a surprise advance of more than 15km into Ukrainian territory.
Ukraine says the intrusion can be contained, but it adds to fears about its ability to hold back the Russians along the 1000-mile frontline.
Image: Russian soldiers prepare to launch a Lancet drone in an undisclosed location in Ukraine. Pic: Russian Defence Ministry Press Service/AP
Russia launches almost nightly drone attacks on Ukraine’s cities, killing civilians and striking residential targets.
General Yuriy says Ukraine picks targets that hurt Russia’s war effort, and it is constantly honing its capability.
“Each operation”, he says, “uses multiple types of drones simultaneously, some fly higher, others lower. That is our technical edge.”
How satisfying, I asked, was it to watch so much enemy infrastructure go up in smoke? He answered with detached professionalism.
“It does not bring me pleasure, war can never be a source of enjoyment. Each of us has tasks we could fulfil in peacetime. But this is war; it doesn’t bring satisfaction. However, it benefits the state and harms our enemy.”
Whatever happens in Alaska, General Yuriy and his teams will continue pioneering drone warfare, hitting Vladimir Putin’s economy where it hurts most.