Retailers have had a rough time lately, what with Superstorm Sandy, a sluggish economy and overall weak holiday sales.
You'd think dollar stores would be the exception. Not today.
Family Dollar missed earnings-per-share estimates by 6 cents a share and said profits the current quarter and full year would come in below forecasts. The company, which sells everything from baby care to home goods, blamed a worsening macro environment for ratcheting down its expectations.
That's not great news for a company that already offers steep discounts. Shares of Family Dollar (FDO) sank as much as 14%, dragging other dollar stores down with it.
Still, the overall weakness gave StockTwits traders plenty to chat about.
They did tell us. But that was back in October. So how bad did it have to get for them to double down on that dour outlook?
Exactly! It certainly doesn't bode well, in my opinion, if you can't get consumers to spend money at a dollar store. Although Family Dollar may be facing other issues as well.
I can't say whether that's true or not since I haven't been in a Family Dollar store lately. But I can say that would be a big detractor for many shoppers. If you can't find what you're looking for, you may wind up going elsewhere.
Well there you have it. Things may be looking up for Family Dollar, as long as it can weather the near-term storm of economic uncertainty.
|Invasive lionfish now on Whole Foods menu - sans poisonous spines|
|Verizon reaches deal with 36,000 striking workers|
|Donald Trump under oath: Trump University's promises crumble|
|Mark Zuckerberg to tear down and rebuild four houses surrounding his home|
|Huge breakthrough in blazing fast internet speeds|