Family Dollar Shows Strength in First Quarter
Thomas Russell -- Furniture Today, January 11, 2010
Family Dollar Stores Inc. boosted first quarter earnings per share 16.7% to 49 cents on a 14% increase in net income to $67.6 million.
“We have increased our relevancy across our diverse customer base and are positioned to accelerate top line growth,” said Howard Levine, chairman and ceo. “I am confident that our efforts to broaden the appeal of our assortment, strengthen our customer communications and improve the in-store shopping experience will result in continued market share growth and strong financial returns.”
Sales for the first quarter, ended Nov. 28, 2008, rose 3.9% to $1.823 billion. Comps came in ahead, increasing 2.4% from improved customer traffic.
Average transaction value for the quarter was flat, and sales were strongest in the consumables category.
Results specific to the recent holiday selling period proved strong for Family Dollar, noted Levine, with comparable store sales for the December reporting period up 4%.
For the second quarter, Family Dollar expects comparable sales to increase 2% to 4% and earnings per share of between 65 cents and 70 cents compared with 60 cents in the second quarter of the last fiscal year.
“We are investing to drive stronger top-line growth and expect to build sales momentum through the second half of the year,” Levine said. “Reflecting the cadence of these initiatives, we expect comps will increase 3% to 5% in the second half of fiscal 2010.”
The company expects that net sales for the full fiscal year to increase 4% to 6% as compared with fiscal 2009. Reflecting these expectations, Family Dollar continues to project that earnings per share will be between $2.15 and $2.35 in fiscal 2010.
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