Dollar General cuts annual profit outlook on higher costs

(Reuters) - Dollar General Corp trimmed its annual profit forecast on Thursday, signaling that pressures on the discount store chain's margins were mounting amid higher costs and a drop in demand for discretionary items, sending shares 8% lower premarket.

The retailer said it saw unanticipated delays in its supply chain, resulting in higher-than-expected transportation costs in the third quarter.

The company now expects fiscal 2022 earnings per share to grow about 7% to 8%, compared with its prior outlook of an increase of about 12% to 14%.

(Reporting by Granth Vanaik and Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta)