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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. 

With Post wires

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Canucks, Boeser agree on new seven-year deal

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Canucks, Boeser agree on new seven-year deal

The Vancouver Canucks have come to terms with forward Brock Boeser on a new seven-year contract, carrying a $7.25 million AAV.

Canucks GM Patrik Allvin announced the deal on Tuesday during the first hour of NHL free agency. Boeser, 28, was an unrestricted free agent on a previously expiring contract.

Drafted by Vancouver 23rd overall in the 2015 NHL draft, Boeser has collected 204 goals and 434 points in 554 games with the Canucks to date. A top-six scoring threat, Boeser has elite playmaking skills and the potential to produce big numbers offensively. He had his best year offensively in 2023-24, producing 40 goals and 73 points in 81 games.

Boeser didn’t hit those marks again last season — settling for 25 goals and 50 points in 75 games — but was still second amongst teammates in output. He also plays a prominent role on Vancouver’s power play and when he can generate opportunities at 5-on-5, he is a true difference-maker up front for the Canucks.

The extension is a happy ending for Vancouver and Boeser. When the regular season ended, Boeser admitted “it’s tough to say” whether he’d be back with the Canucks. Boeser reportedly turned down a previous five-year extension offer with the club and Allvin subsequently looked into deals for him at the March trade deadline, with no takers. Boeser looked — and sounded — poised to explore his options on the open market.

Ultimately, Boeser decided to stay put by committing the best years of his career to the Canucks.

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Jake Allen agrees to 5-year deal with the Devils

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Jake Allen agrees to 5-year deal with the Devils

Jake Allen, one of the top goaltenders available entering free agency, is not heading to the market after agreeing to a five-year deal with the New Jersey Devils, sources told ESPN on Tuesday.

Allen’s average annual value on the deal is $1.8 million, sources told ESPN. That AAV allows the Devils to run back the same goaltending tandem for next season.

Jacob Markstrom has one year remaining on his contract for $4.125 million. Nico Daws is also under contract for next season, before becoming a restricted free agent next summer.

Several teams were interested in the 34-year-old veteran, whom sources said could have made more money on the open market. However, the deal with the Devils gives Allen long-term security. Allen has played for the Blues, Canadiens and Devils over his 12-year-career. He has started in 436 career games.

Last season, Allen started 29 games for the Devils, going 13-16-1 with a .906 save percentage, 2.66 GAA and four shutouts.

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Capitals sign Fehervary to 7-year, $42M extension

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Capitals sign Fehervary to 7-year, M extension

Washington Capitals defenseman Martin Fehervary signed a seven-year extension through the 2032-33 season that is worth $6 million annually, the team announced Tuesday.

Fehervary, who had one year of team control remaining, will enter the final season of a three-year bridge deal that will see him make $2.675 million before his new contract begins at the start of the 2026-27 season.

He finished the season with five goals and a career-high 25 points while logging 19 minutes. Fehervary also played a crucial role in the Capitals’ penalty kill by finishing with 245 short-handed minutes for a penalty kill that was fifth in the NHL with an 82% success rate.

Securing the 25-year-old Fehervary to a long-term deal means the Capitals now have seven players who have more than three years remaining on their current contracts.

It also means the Capitals front office has one less decision to make ahead of what is expected to be an active offseason in 2026 that will see the club have what PuckPedia projects to be $39.25 million in cap space.

That’s also the same offseason in which captain and NHL all-time leading goal scorer Alex Ovechkin‘s contract will come off their books along with that of defenseman John Carlson.

But until then, the Capitals have their entire top-six defensive unit under contract as they seek to improve upon a 2024-25 season that saw them finish atop the Metropolitan Division with 111 points before they lost in the Eastern Conference semifinal to the Carolina Hurricanes in five games.

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