Dollar General (DG) said high inflation is changing customers’ shop♌ping habits, and that’s hurting its business༺.

The discount retailer was the worst-performing stock in the S&P 500 after missing profit and sales forecasts and slashing its full-year guidance. 

Dollar General reported fiscal 2023 first-quarter earnings per share (EPS) of $2.34, with revenue up 6.8% to $9.34 billion. Same-store sales grew 1.6%, less than half of analysts’ estimates.

CEO Jeff Owen said the macroeconomic environment “has been more challenging than expected, particularly for our core customer.” The𒐪 company indicated those “macroeconomic headwinds” are having “a significant impact on customers’ spending leve💞ls and behaviors.”

Dollar General now expects 2023 revenue to be up 3.5% to 5%, down from its previous outlook of an increase of 5.5% to 6%. It sees same-store sales rising 1% to 2% as compared with the earlier forecast of 3% to 3.5%. It expects EPS to be flat to down 8% instead of advancing 4% to 6%. 

The news sent shares plunging almost 20%. The stock has lost a third of its value this year.