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Shares of the discount store operator were down about 2% in premarket trading.
With the United States on the verge of recession, rising rental and consumer prices have forced consumers to rethink their purchases and rein in spending on discretionary items ranging from homeware to toys.
Last week, Walmart (NYSE:WMT) Inc also forecast full-year earnings below estimates and said people were increasingly shifting toward buying more food and consumables from general merchandise.
The discount store operator expects 2023 profit between $6.30 and $6.80 per share, below analysts’ estimate of $7.78, according to IBES data from Refinitiv.
However, the company expects 2023 sales between $29.9 billion and $30.5 billion, above the estimate of $29.86 billion.
