DOLLAR GENERAL STOCK IS DOOMED???

YouTube YouTube YouTube is it completely over for Dollar General so we'll talk about that in this video now I appreciate you guys for tuning in please hit that thumbs up as we continue to grow the channel I would appreciate it now Dollar General is down over 26% at the time of this recording and it is currently 10:46 a.m. eastern time you can see down here at the bottom right and a lot of people want to know what's going on with Dollar General now I'll go ahead and and and say this and you know what I I'll save it after we get done letting you know what's going on so Dollar General stock was tumbling Thursday after the discount retailer Miss second quarter earnings estimates and cut his Outlook citing a strained consumer now Dollar General reported second quarter adjusted earnings of $11.70 a share on revenue of $ 10.21 billion now analyst surveyed by fact said were expecting earnings at $179 Cent per share on revenue of 10.37 billion so there was a Miss on both a 9% Miss is far as the shares go and then about uh what is that I don't know about 10 10 uh million dollar Miss on on the revenue side of the spectrum now now in the same period last year the company posted earnings of $22.13 a share on revenue of $9.8 billion now as far as Revenue they're up year-over-year but on the earnings for share not looking as good as last year now same store sales increased 05% in the quarter and were driven by an increase in customer traffic but that was partially offset by a decline in average transaction amounts okay now in the nutshell this is what's going on we'll continue but I want to give you guys my thoughts on Dollar General now me being completely honest here the Dollar Generals there are at least near where I am uh in addition to the the sales right I think they would be more profitable if the stores were actually open so a lot of times when my wife and I want to go they're not open you go down the street to another one they're not open and they'll say they'll have a sign that says we're going to open you know two or three hours from now or somebody says I'm taking a a bathroom break you're sitting there and they never come back so there are some structural things that need to be worked on aside of well this does have something to do with their numbers I'm sure of but there's just some some some some managerial things that they could work on and I would add this too we know that Walgreens are struggling CVS they're struggling so some of the midsize retailers have just not been able to really capture the consumer like they once wearing and that's because the cost is steady going up you guys remember when a dollar store actually used to be a dollar or less now you know they got items for $10 $15 $20 and it's understandable because you have to make a profit and when your competition is Walmart uh even Costco you can buy them in bul Sam's Club which is also another company uh that's associated well a part of Walmart it's just going to be hard to compete okay so unless the dollar stores start to get their cost down a little bit more they are going to continue to struggle in addition to keeping the worker the type of workers in in their establishment they're going to be reliable and actually going to be there to operate the stores they're going to continue to have problems okay now as they go on to say it says despite advancing several of our operational goals and driving positive traffic growth we are not satisfied with our financial results including Topline results below our expectations for the quarter now chief executive Todd Vaso said in a press release he added that the softer sales Trends were partially attri attributable to a core consumer Chief chiefly lower income customers who feels financially constrained now I'll also go ahead and add this I think a lot of the management needs to be a little bit more involved with the stores that they manage I think that's one of the biggest issues that I've seen as I stated workers just aren't there even if the stores are open you go in nobody's there to ring you up you know and in addition to that maybe you know some self- automated checkouts would be good and and I hate to say that but they just and I don't know how it is what you guys are but from my experience it just hasn't been good over the last couple of years and I'll just leave it at that now Dollar General sles outlook for the year ending January 2025 the company now expects adjust the earnings between $5.50 a share and $6.20 a share for the year compared to its previous $680 per share to $755 per share so that's virtually a $130 per share decrease from what it had initially reported uh ending January 2025 which is not good now the estimate for new net sales growth of 4.7% to 5.3% is down from the previous guidance of 6% to 6.7% and lastly shares of Dollar General was sinking 24 % in pre-market which right now is down over 26% to $93.75 which is falling more to $966 which you see on the screen on track for the largest percentage loss on record and the lowest close since 2018 according to Dow Jones data coming into the session the stock has dropped 88.9% this year okay now I wouldn't say that this proves that the consumer is is weaker I can't say that because Walmart's numbers are looking pretty good if I'm not mistaken Target did okay uh you know stores like Meyer are doing well they're building more facilities and so when we talk about some of these bigger retailers they're doing good but a lot of the clientele or business I would say is Shifting over to the bigger establishments because they're offering items at a cheaper price and so again if they don't find a way to compete against these bigger players it's going to be a long next couple of years especially with interest rates being as high as there there are right so we know that some of these smaller cap stocks like a Dollar General are going to start to do better as these interest rates start to to come down okay so in a nutshell guys Dollar General is going to be in some trouble for a little bit of time let me know what you guys think about this in the comments below where do you see Dollar General going over the next couple of years uh if you're a person that has going into a store what issues have you seen uh and for me I think the managers of the store had to be more aware of what's going on in those stores in addition to that maybe region managers need to start to visit these stores a little bit more often as well okay so listen guys I appreciate you guys for tuning in please hit that thumbs up as we continue to goow the channel and I am out peace