Ugly forecast from Family Dollar could resonate in sector

|About: Dollar General Corporation (DG)|By:, SA News Editor

The dollar store group and related discounters could feel pressure today after Family Dollar chops down its forecast for 2014 profits considerably.

While Family Dollar had tobacco and food sales to provide some support, companies relying on a higher mix of apparel and merchandise are at risk.

Retail analysts note that Family Dollar has a tendency to aim too high with its guidance, so the carnage in the sector could be spotty with some companies already leaning to the conservative side.

On watch: DG, DLTR, FIVE, BIG, GMAN, SMRT, ALCS, ROST.