(Provides particulars on outcomes, share value)
March 18 (Reuters) – Greenback Common Corp forecast annual same-store gross sales and revenue under estimates on Thursday, indicating the roll out of vaccines and a reopening financial system would result in a bigger-than-expected slowdown from a pandemic-fueled rush for lower-priced groceries.
The corporate’s shares, which have gained practically 22% over the past 12 months, fell 5% earlier than the bell.
Low cost shops like Greenback Common have been among the many larger retail beneficiaries of the COVID-19 well being disaster, as People, going through greater unemployment charges and decrease family revenue, appeared for extra reasonably priced merchandise to replenish their pantries.
Nevertheless, the roll out of vaccines and the promise of a return to relative normalcy can have led analysts to anticipate gross sales to taper, particularly within the second half of this 12 months after new stimulus cash has dried up.
The corporate stated it expects full-year same-store gross sales to fall 4% to six%, in contrast with analysts’ estimate of a 1.2% decline, in line with IBES knowledge from Refinitiv.
Greenback Common forecast annual earnings per share of $8.80 to $9.50, under estimates of $10.08. (Reporting by Uday Sampath in Bengaluru; Modifying by Krishna Chandra Eluri)