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.
Events in Ukraine over the last 24 hours have been utterly barbaric. Bad even by the standards of this horrendous war.
Multiple Iranian drones and North Korean missiles laden with explosives brought carnage to swathes of the country, killing yet more civilians.
This was Russia’s answer to President Donald Trump’s peace plan and ultimatum. Normally, strangely reluctant to criticise Russia, even Trump was moved to implore Vladimir Putin to “STOP”.
Image: Ukrainian personnel clear rubble after a Russian ballistic missile attack in Kyiv. Pic: AP
Image: A woman is helped after an apartment building was hit by a Russian ballistic missile strike. Pic: Reuters
Image: A Ukrainian serviceman carries a dog out of a house damaged by a Russian airstrike in Kyiv. Pic: AP
But in truth, throughout Trump’s Ukraine peace process – if it can be called that – most of America’s pressure has been on Ukraine.
The peace plan that has emerged from direct US talks, which were mainly with Russia, is one-sided, and to Ukraine and its European partners, it is a surrender plan which is impossible for Ukraine to accept.
Even Russia’s supporter in this war, China, has problems with it, in particular with America’s proposal that Russia is rewarded for its invasion with sovereignty of Crimea.
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Far from heading towards a peace deal, we are now, it seems, careering towards a crunch point that could see America give up on Ukraine completely, possibly blaming Kyiv for failure and renewing relations with Moscow.
Might will be proven right, and Vladimir Putin will be emboldened to do it all over again in a few years, possibly against other countries too. That is the fear in chancelleries across Europe.
There are two key questions now.
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1:26
‘Russia is winning peace talks’
Image: A drone explosion over Kyiv. Pic: Reuters
Does Trump mean he will walk away from trying to broker peace or supporting Ukraine entirely?
And if he does, can Ukraine carry on without US help?
European nations have said they will carry on supporting Ukraine. They see its survival and victory as essential for their own security.
They already give Ukraine €40bn in financial and military help. Ukraine would need another €20bn or so to fill the US gap – not that tall an order.
Image: Destruction in Kyiv following a Russian airstrike. Pic: Telegram
Image: A large-scale Russian missile and drone attack hit Kyiv overnight. Pic: Reuters
And they are beefing up their defence industries to do more to give Ukraine what it needs to fight Russia.
Ukraine’s defence increasingly depends on a homegrown drone industry, which doesn’t rely on American backing.
But Ukraine does need US intelligence, aerial defence support and satellite coverage provided by Starlink.
Were they to lose all that, they could be in trouble.
What exactly Trump does if and, as seems increasingly likely, when his deal fails, he is not making clear.
But what seems certain is America is caring less and less for Ukraine’s plight under this president.
A professional footballer has been jailed for causing the death of a cyclist in a car crash.
Mansfield Town forward Lucas Akins crashed into Adrian Daniel in his Mercedes G350 in Huddersfield on 17 March 2022, while taking his daughter to a piano lesson.
Leeds Crown Court heard that Mr Daniel, 33, suffered catastrophic head injuries and died 10 days later.
Akins, 36, played in Mansfield’s 0-0 draw with Wigan on 4 March, hours after pleading guilty at Leeds Crown Court to death by careless or inconsiderate driving.
The footballer has continued to play for Mansfield since the incident.
Judge Alex Menary said on Thursday that he had considered imposing a suspended sentence, but had concluded that only an immediate sentence of 14 months’ imprisonment was appropriate.
Image: Mansfield Town’s Akins. Pic: George Wass/PPAUK/Shutterstock
A spokesperson for Mansfield Town FC said it “acknowledges” the court’s decision and offered the club’s “sincere and deepest condolences to the family of Adrian Daniel at this difficult time”.
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“The club is considering its position with regards to Lucas and will be making no further comment at this stage,” the spokesperson added.
‘Like hell’
Prosecuting, Carmel Pearson said it was a “difficult junction to emerge from” but that the defendant “did not stop at the give-way sign”.
Savanna Daniel, Mr Daniel’s wife, told the court it had been “like hell and a nightmare [she is] not waking up from”.
“There was no reason for Adrian to be killed that way,” she said, adding it was “too simple a collision to have taken a life”.
Image: Adrian Daniel. Pic: West Yorkshire Police/PA
Mrs Daniel said she did not want Akins’s children growing up without their father as she did not want “any more lives to be destroyed from this”, but she criticised the defendant for failing to plead guilty at an earlier stage.
Tim Pole, representing Akins, said he was “fundamentally a decent, honest and hard-working individual”.
“I want to publicly apologise on his behalf,” he said.
Mr Pole added that Akins understood Mrs Daniel’s “frustration and anger” over the time it took him to plead guilty.
Handing down his sentence, the judge accepted that Akins’s remorse was genuine but by not admitting to the offence at an earlier stage, he had prolonged Mrs Daniel’s “heartache and grief”.
After the sentencing, Mrs Daniel said “three years of hell” had come to a close, in a statement via West Yorkshire Police.
She said Akins had made a “farce” of the justice system and that his failure to plead guilty sooner “makes a mockery of any remorse that Akins offers for his actions”.
Akins, who has played for Mansfield Town since 2022 and was previously with clubs including Huddersfield Town, Tranmere Rovers and Burton Albion, was also suspended from driving for 12 months.
Much of the UK will bask in warm, sunny conditions at the start of next week, with inland temperatures up to 10C higher than average, but it’s a mixed picture before then.
The first half of spring brought warmth and sunshine for many, but the last 10 days have been more changeable.
Some areas of Ireland, Northern Ireland, southwest Wales, and southwest England have seen much-needed rainfall, whereas parts of northern Britain have observed very little.
Image: Warm, sunny conditions, such as those in Harrogate on Thursday, are expected at the start of next week. Pic: PA
Tyne and Wear in northeast England has recorded just 7% of its average April rainfall, whereas Cornwall in the southwest of the country has already seen 156%.
And the Milford Haven rain gauge in Wales has seen over twice its average April rainfall.
There’ll be more rain over the next few days, mainly in the West, but it looks like high pressure will settle things down from Sunday.
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Temperatures will rise too, becoming widely above average on Monday and Tuesday.
Highs of 22C (72F) to 24C (75F) can be expected.
The highest temperature of the year so far is 24C (75F), seen at Northolt in northwest London on Saturday 12 April.
The settled conditions will bring plenty of sunshine, with UV levels expected to be around moderate.
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It’ll be dry for runners and spectators, with sunny spells and light winds.
Competitors in the Manchester Marathon on Sunday will face similar conditions to London’s runners; it should be dry with sunny spells. The temperature first thing will be around 9C (48F), but it’ll warm up with a high of about 19C (66F).