Dollar General (DG:US) announced its second-quarter earnings, which came in much lower than expected. The retailer was also forced to cut its full-year projections.

The company’s EPS of $2.13 fell short of the analyst estimate of $2.48. Revenue stood at $9.8 billion, slightly below the consensus estimate of $9.93 billion.

In terms of comparable sales, Dollar General saw its sales contract 0.1%, compared to a growth of 4.6% year-over-year. On the other hand, the analysts were looking for growth of +0.9%. 

“While we are not satisfied with our overall financial results, we made significant progress in the second quarter improving execution in our supply chain and our stores, as well as reducing our inventory growth rate and further strengthening our price position,” said Jeff Owen, Dollar General’s chief executive officer.

“We are pleased with the advancements we have made, and we are now taking further actions and making additional investments to accelerate our progress and ultimately serve our customers even better. While these investments will pressure our 2023 results, we believe they will further strengthen our foundation as we move into 2024 and focus on driving sustainable growth and creating long-term shareholder value.”

Given weak Q2 results, the company now expects an EPS in the range of $7.10 to $8.30. Analysts were looking for as much as $10.01 in profits per share.

Net sales growth is now expected in the range of 1.3% to 3.3% with comparable sales seen flat (up or down 1%). The company was previously looking for net sales growth of 4.25% and same-store sales growth of 1.5%.

Earlier this month, Congressman Daniel Goldman disclosed the $50,000 - $100,000 worth sale of DG shares on July 12, when they closed at $168.61.

Shares were trading in the low $130s in light of the earnings-triggered selloff.