Dollar General Corp. declined the most in two years after reducing the top end of its full-year earnings forecast, citing “moderating” sales growth.
The shares fell (DG:US) 9.2 percent to $48.64 at the close in New York, the biggest drop since June 2011. Dollar General has advanced 10 percent this year compared to a 14 percent gain for the Standard and Poor’s 500 Index.
“We have updated our outlook for the year to reflect moderating sales growth and a lower expected gross profit rate than we previously anticipated,” Chief Executive Officer Rick Dreiling said in a statement today.
Full-year adjusted earnings per share will be as much as $3.22, decreased from a previous forecast of a maximum of $3.30, the Goodlettsville, Tennessee-based company said in the statement. Analysts projected $3.28, the average of estimates (DG:US) compiled by Bloomberg.
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