Investors went shopping at the dollar store early Monday...but the buying spree didn't last too long.
Shares of Dollar General (DG) spiked nearly 6% after the retailer reported earnings that topped forecasts, despite missing revenue estimates.
Investors were heartened by Dollar General's top line earnings numbers and its plan to buy back stock.
But shares pulled back as concern about the company's guidance gave investors pause.
"The volatility of the macroeconomic environment continues to pressure the consumer and impact the company's cost of purchasing and delivering merchandise to its stores," Dollar General said in a statement.
StockTwits traders took a cautious view.
Not sure I completely concur. Sure, the initial pop in Dollar General's stock was pretty substantial. But it's pulled back so quickly that I think it will take more than one good report to really get things going.
Exactly my point (see above). The guidance was roughly in line with forecasts. So, while it's all fine and good to say they see sales picking up during the second half of 2013, a lot can happen between now and then.
That may be another reason to see pressure on the stock. I'm not sure strong sales of tobacco are the optimum selling point.
They are probably feeling more frugal than we think. Dollar General's stock has retreated from its early rally and rival Family Dollar (FDO) is down more than 2%.
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 MORECatherine Tymkiw - Jan 3, 2013 2:01 PM ET
|Elon Musk to Tesla employees: NEVER discount a car|
|Big names, big viewership: 'Saturday Night Live' gets ready to mock Trump and Clinton|
|Worried about fake bank accounts in your name? Here's what you need to know|
|China is cutting off cash to Venezuela|
|Ferrari reveals fastest convertible ever, and a super-fast family car|