Dollar General misses sales estimates as discretionary spending wanes

(Reuters) – Dollar General Corp on Thursday missed market estimates for quarterly same-store sales as Americans curtailed discretionary spending amid stubbornly high inflation, and winter storm Elliott caused damage to its inventory.

The discount store chain, like many other U.S. retailers, has seen a slowdown in demand for discretionary products such as houseware and apparel in favor of more need-based consumable goods.

In February, Dollar General forecast annual profit below expectations after cutting its earnings estimate for the holiday quarter on heavy discounts, higher costs and inventory damage due to winter storm Elliott, which hit several U.S. states in December.

On Thursday, the company also reiterated its full-year same-store sales and profit forecasts.

The discount store chain‘s same-store sales rose 5.7% in the fourth quarter, compared with analysts’ average estimate of about a 6% increase, according to Refinitiv IBES data.

(Reporting by Granth Vanaik in Bengaluru; Editing by Shinjini Ganguli)