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 families of the two victims of the Manchester synagogue attack have paid tribute to them as “heroic, beloved and cherished”.
Adrian Daulby, 53, and Melvin Cravitz, 66, were killed in the attack at Heaton Park synagogue in Crumpsall on Thursday.
Mr Daulby, a member of the congregation, was shot accidentally when police opened fire on attacker Jihad al Shamie.
The synagogue’s rabbi told Sky News it happened as Mr Daulby “was holding the doors to make sure everyone inside stayed safe”.
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Hero held doors closed to keep everyone safe, rabbi says
His family said he was a “hero” and a “lovely down-to-earth man” whose “final act was one of profound courage and he will forever be remembered for his heroic act”.
The family of Mr Cravitz – a security guard at the synagogue who was attending the service – said he would “do anything to help anyone”.
“He was so kind, caring and always wanted to chat and get to know people,” they said.
“He was devoted to his wife, family and loved his food. He will be sorely missed by his wife, family, friends and community.”
Image: Adrian Daulby. Pic: Family handout
The tributes came as police said three more people – a man and two women – had been arrested on suspicion of terror offences, bringing the total to six.
They also revealed the attacker had been on bail over a suspected rape, but wasn’t on the radar of counter-terror police.
The Independent Office for Police Conduct (IOPC) is investigating the shooting – standard practice when a member of the public is killed.
The investigation would include “whether police may have caused or contributed to the death” of Mr Daulby.
Sir Stephen Watson, the head of Greater Manchester police, confirmed Mr Daulby’s injury appeared to be “a tragic and unforeseen consequence of the urgently required action taken by my officers”.
‘Gentle giant’
Other relatives of Mr Cravitz told Sky News he was a “gentle giant” who “would never harm a fly”.
His cousin, Phil Bentley, said his death was even more tragic as he would never normally be at the synagogue that early.
Image: Melvin Cravitz. Pic: GMP
Hindi Cohen, a friend and neighbour, said he was a “lovely man” with a good sense of humour, adding: “Our kids loved him. He called himself uncle Melvin to my kids.”
One of Mr Daulby’s neighbours was also emphatic in his praise for a man he lived next door to for 20 years.
Abdul Rahimi called him “one of the best guys I’ve ever seen in my life” and a “very, very good man”, who often bought books and toys for children on their street.
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Synagogue attack victim was a ‘fantastic guy’
Another neighbour, Waqas Hussain, said the pair bonded over a shared love of nature, animals and birds.
He said Mr Daulby was a cancer survivor, who lived alone and started going to the synagogue more after his father died a few years ago.
“Just one of them people… so innocent, so approachable and so pure,” he told Sky News.
He said his friend hadn’t been fasting for health reasons and was debating whether or not to go the synagogue on Thursday.
Increased police patrols are being put in place near synagogues across the country following the atrocity.
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A vigil for the victims was also held in Manchester on Friday – but Deputy Prime Minister David Lammy walked out to shouts of “shame on you” and boos from a few in the crowd.
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Deputy PM heckled at vigil
“Go to Palestine but leave us alone,” one person shouted.
Another protester shouted “my children’s school was closed today – you allowed this to happen.”
Thirty-five-year-old Jihad al Shamie was named as the attacker on Thursday and is believed to be of Syrian descent.
He is understood to have been granted British citizenship when he was around 16, having entered the UK as a young child.
Police shot him dead seven minutes after the first emergency call as they feared he was wearing an explosive device – later identified as a fake.
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Timeline: How terror attack unfolded
Three men also remain in hospital after the attack, with two of them named as Yoni Finlay and Andrew Franks.
One suffered a stab wound, a second was hurt after being hit by a car that al Shamie is said to have driven towards the synagogue, and the third suffered a gunshot wound.
One of the injured victims was working for the Community Security Trust (CST), a charity which provides security to the Jewish community.
Its chief executive, Mark Gardner, said: “One of our CST personnel was seriously injured in yesterday’s terror attack at Heaton Park Synagogue.
“We pray for his continuing recovery and salute the courage of all those who helped stop the terrorist from getting into the shul.”
Sean “Diddy” Combs has been sentenced to more than four years in prison over prostitution charges relating to his former girlfriends and male sex workers.
Judge Arun Subramanian handed down his 50-month sentence – including a $500,000 fine – at the end of a long and emotional full-day hearing, which saw the hip-hop mogul speak out for the first time in court.
Combs, 55, admitted his past behaviour was “disgusting, shameful and sick”, and apologised personally to Cassie Ventura and “Jane”, another former girlfriend who testified anonymously during the trial.
Image: Sean Diddy Combs broke down and cried at one point during the sentencing hearing. Pic: AP/ Elizabeth Williams
But despite his plea for “mercy” and expressions of remorse, the judge told him he had abused his “power and control” with women he professed to love – and rejected the defence’s characterisation that “freak off” sexual encounters were consensual experiences, that his was just a “sex, drugs and rock’n’roll story”.
Addressing Cassie and “the other brave survivors who came forward”, the judge said. “We heard you… I can only say your families are proud of you and your children will be proud of you.
“You weren’t just talking to the jury you were talking to the women who feel powerless – you gave them a voice, you stood up to power, it’s not easy.”
Combs showed no visible change of emotion as his sentence was delivered, looking straight ahead as the judge spoke. Afterwards, he seemed subdued – with no sign of the enthusiasm or feeling showed earlier in the day.
Image: Six of Combs’s children, including Chance, right, and twins Jessie and D’Lila Star, addressed the judge in support of their father. Pic: AP/Richard Drew
Ahead of his own speech, the court heard from six of his seven children – causing the rapper to break down in tears as they spoke about how much they loved him, how he has changed, and how much they and their younger two-year-old sister need him.
The sentencing brings to an end a sordid case that featured harrowing testimony – not just from Cassie and Jane, but also from former employees and associates of Combs.
He was convicted in July of flying people around the US and abroad for sexual encounters, including his then girlfriends and male sex workers, in violation of prostitution laws.
However, he was cleared of more serious charges of racketeering conspiracy and sex-trafficking that could have put him in jail for life.
‘I hate myself right now’
Image: Diddy cried as his children read impact statements. Pic: Reuters/Jane Rosenberg
He expanded on this in court, saying he wanted to “personally apologise” to Cassie for “any harm” he caused her “emotionally or physically”, and to Jane – and all victims of domestic violence.
He told the court he got “lost in my excess and lost in my ego”, but since his time in prison he has been “humbled and broken to my core”.
Combs continued: “I hate myself right now… I am truly sorry for it all.”
Image: Janice Combs supported her son in court. Pic: AP Photo/Eduardo Munoz Alvarez
Once one of the most influential hip-hop producers of the 1990s and 2000s – the founder of Bad Boy Records and a Grammy-winning artist in his own right – he has led a very different life since his high-profile arrest.
He was facing a maximum of 20 years in prison for the prostitution-related charges, so the sentence is towards the lower end of the scale.
Prosecutors had argued he should spend at least 11 years behind bars, while Combs’s lawyers were calling for him to be freed almost immediately due to time already served since his arrest just over a year ago.
Christy Slavik, for the prosecution, told the judge sparing the rapper serious prison time would excuse years of violence.
‘Make the most of that second chance’
Image: Judge Arun Subramanian told Combs he will still have a life after prison if he takes his second chance. Pic: Elizabeth Williams via AP
The judge, who had rejected bail for the rapper several times before sentencing, told him that he would get through his time in prison. It will be hard, he said, but he will still “have a life afterwards”.
Combs has “a chance for renewal and redemption”, he added. “What went wrong can be made right… I am counting on you to make the most of that second chance.”
Outside the courthouse, journalists and onlookers swarmed the pavements as TV crews stood in a long row across the street, echoing scenes from the two-month high-profile trial.
It included four days of testimony from Cassie, now Cassie Ventura Fine, who told the court she was coerced and sometimes blackmailed into sexual encounters with male sex workers, referred to as “freak offs”.
Cassie responds
Image: Diddy and Cassie at the premiere for a film she starred in, just days after the 2016 hotel incident. Pic: zz/Galaxy/STAR MAX/IPx/ AP
Jurors were also shown video clips of Combs dragging and beating her in a Los Angeles hotel hallway after one of those sessions in 2016.
Combs referred to this in court, saying it was a “heavy burden” that he will forever carry, and that he was “sick from drugs” and “out of control” at the time, “lost in my excess and lost in my ego”.
Ahead of the sentencing, Cassie also submitted a letter to the judge, calling Combs a “manipulator” and saying she would fear for her safety should he be immediately released.
Responding to the sentence, her lawyers Douglas Wigdor and Meredith Firetog (Wigdor LLP), said: “While nothing can undo the trauma caused by Combs, the sentence imposed today recognises the impact of the serious offences he committed.
“We are confident that with the support of her family and friends, Ms Ventura will continue healing knowing that her bravery and fortitude have been an inspiration to so many.”