Dollar General cites ‘inefficiencies’ in internal supply chain for FY guidance

"During the third quarter, the company experienced unanticipated delays in acquiring additional temporary warehouse space sufficient for its inventory needs, which caused inefficiencies within the company’s internal supply chain. These challenges resulted in higher-than-anticipated supply chain costs, including fees incurred for delays in returning shipping containers, and higher transportation costs caused by the need to service stores from less-than-optimal distribution center alignments. As a result of these greater-than-anticipated gross margin pressures, which we believe are temporary but will continue to a lesser degree through the fourth quarter of 2022, as well as those related to sales mix, inventory shrink and damages, the company is updating its diluted EPS guidance for the 53-week fiscal year ending February 3, 2023 from that which was issued on August 25, 2022. Additionally, the company is narrowing its expectations for same-store sales growth and capital expenditures within the previously guided ranges, and is reiterating the remainder of its financial guidance for fiscal year 2022 from that which was issued on August 25, 2022. The company is also providing guidance for same-store sales growth and diluted EPS for the fourth of quarter of fiscal year 2022."