Dollar General (DG) said high inflatio🌜n is changing customers’ shopping 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.” The company indicated those “macr✱oeconomic headwinds” are having “a significant impact on customers’ spending levels 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.