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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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Make ‘significant adjustments’ to Online Safety Act, X urges govt

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X criticises Online Safety Act - and warns it's putting free speech in the UK at risk

The Online Safety Act is putting free speech at risk and needs significant adjustments, Elon Musk’s social network X has warned.

New rules that came into force last week require platforms such as Facebook, YouTube, TikTok and X – as well as sites hosting pornography – to bring in measures to prove that someone using them is over the age of 18.

The Online Safety Act requires sites to protect children and to remove illegal content, but critics have said that the rules have been implemented too broadly, resulting in the censorship of legal content.

X has warned the act’s laudable intentions were “at risk of being overshadowed by the breadth of its regulatory reach”.

It said: “When lawmakers approved these measures, they made a conscientious decision to increase censorship in the name of ‘online safety’.

“It is fair to ask if UK citizens were equally aware of the trade-off being made.”

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What are the new online rules?

X claims the timetable for platforms to meet mandatory measures had been unnecessarily tight – and despite complying, sites still faced threats of enforcement and fines, “encouraging over-censorship”.

More on Online Safety Bill

“A balanced approach is the only way to protect individual liberties, encourage innovation and safeguard children. It’s safe to say that significant changes must take place to achieve these objectives in the UK,” it said.

A UK government spokesperson said it is “demonstrably false” that the Online Safety Act compromises free speech.

“As well as legal duties to keep children safe, the very same law places clear and unequivocal duties on platforms to protect freedom of expression,” they added.

Users have complained about age checks that require personal data to be uploaded to access sites that show pornography, and 468,000 people have already signed a petition asking for the new law to be repealed.

In response to the petition, the government said it had “no plans” to reverse the Online Safety Act.

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Why do people want to repeal the Online Safety Act?

Reform UK’s leader Nigel Farage likened the new rules to “state suppression of genuine free speech” and said his party would ditch the regulations.

Technology Secretary Peter Kyle said on Tuesday that those who wanted to overturn the act were “on the side of predators” – to which Mr Farage demanded an apology, calling Mr Kyle’s comments “absolutely disgusting”.

Regulator Ofcom said on Thursday it had launched an investigation into how four companies – that collectively run 34 pornography sites – are complying with new age-check requirements.

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British children who drowned off Spain named
Man charged after children fell ill at summer camp

These companies – 8579 LLC, AVS Group Ltd, Kick Online Entertainment S.A. and Trendio Ltd – run dozens of sites, and collectively have more than nine million unique monthly UK visitors, the internet watchdog said.

The regulator said it prioritised the companies based on the risk of harm posed by the services they operated and their user numbers.

It adds to the 11 investigations already in progress into 4chan, as well as an unnamed online suicide forum, seven file-sharing services, and two adult websites.

Ofcom said it expects to make further enforcement announcements in the coming months.

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Sports

Down 9 runs in 1st, Rockies rally to beat Pirates

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Down 9 runs in 1st, Rockies rally to beat Pirates

DENVER — Colorado Rockies outfielder Brenton Doyle had a hard time describing what had just taken place after he delivered the crowning blow in perhaps the wildest game of the major league season.

Doyle hit a two-run homer with one out in the bottom of the ninth inning to cap Colorado’s stunning comeback from a nine-run, first-inning deficit in a 17-16 victory over the Pittsburgh Pirates on Friday night.

“Honestly, pretty speechless,” Doyle told reporters. “It’s hard to put into words. Just so proud of everyone in this clubhouse, never giving up. Man, what a win.”

Colorado won despite allowing nine runs during a first inning in which Pittsburgh’s Oneil Cruz hit a grand slam and Andrew McCutchen had a three-run homer.

The Rockies are the first team to overcome a nine-run, 1st-inning deficit since Cleveland on August 23, 2006 against Kansas City, according to ESPN Research.

The Rockies are also the first team to win despite allowing 15 or more runs since the Boston Red Sox beat the Texas Rangers 19-17 in August 2008.

“Getting down nine in the first, it’s tough to come back from, but we kept the energy high,” Doyle said. “We kept the fight in us. Oh my God, what a game.”

Colorado scored one run in the bottom of the first, three in the third, two in the fourth and four in the fifth to cut Pittsburgh’s lead to 15-10. The Rockies still trailed 16-10 before scoring two runs in the eighth and five in the ninth.

After Pittsburgh’s Dennis Santana started the ninth by striking out Ezequiel Tovar, Hunter Goodman‘s 425-foot homer reduced the Pirates’ lead to 16-13. Santana then walked Jordan Beck and allowed an RBI triple to Warming Bernabel.

Thairo Estrada singled home Bernabel before Doyle delivered a 406-foot shot to end the game.

The events in Colorado highlighted a night full of offense across the majors. According to StatsPerform, Friday marked the first time since June 23, 1930, that three major league games on the same day had at least 25 combined runs.

The Miami Marlins erased an early 6-0 deficit and scored three runs in the bottom of the ninth to beat the New York Yankees 13-12. The Milwaukee Brewers had 25 hits while trouncing the Washington Nationals 16-9.

The Associated Press contributed to this report.

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Yanks’ newcomers implode in 13-12 loss to Marlins

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Yanks' newcomers implode in 13-12 loss to Marlins

MIAMI — Xavier Edwards hit a tying two-run single in the ninth, then raced home with the winning run on Agustin Ramirez‘s chopper in front of the plate as the Marlins rallied to beat the New York Yankees 13-12 on Friday night.

Edwards’ hit came off new Yankees reliever Camilo Doval (4-3), and Edwards beat the attempted tag at home on Ramirez’s fielder’s choice grounder. After Edwards’ single off Doval, Jose Caballero, also a newcomer, committed an error in right field, allowing the Marlins to tie the score.

The Yankees had won 79 straight games when scoring 10-plus runs, which was the longest streak in major league baseball since 2019, according to ESPN Research.

Giancarlo Stanton and Trent Grisham each hit three-run homers that helped the Yankees build a 9-4 lead before the Marlins stunned New York with a six-run seventh.

Kyle Stowers hit a grand slam off newly acquired Yankees reliever Jake Bird, and Javier Sanoja hit a solo shot off David Bednar, another new acquisition. Ramirez singled twice, including a leadoff base hit and a go-ahead single that put the Marlins up 10-9.

Anthony Volpe then tied it at 10 with a leadoff home run in the eighth, and Bednar pitched a scoreless inning before Ryan McMahon‘s RBI single against Anthony Bender (3-5) in the ninth. Volpe, who had four hits, gave the Yankees a two-run cushion with a run-scoring double.

Yankees starter Carlos Rodon was lifted in the fifth after issuing his fifth walk. The left-hander shook his head as he left the mound, with his outing ending after he struck out nine and allowed two walks and four runs.

Rodon held the Marlins without a hit before Eric Wagaman‘s leadoff single in the fifth. Sanoja launched an opposite-field two-run shot off Rodon, and pinch hitter Liam Hicks drove in two with a single off Jonathan Loaisiga that made it 6-4.

Jasson Dominguez also had three hits.

Marlins starter Janson Junk went five innings and allowed six runs and six hits while striking out four.

The announced crowd at loanDepot park was a season-high 32,299.

Information from The Associated Press was used in this report.

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