Family Dollar Stores Q2 Profit Tops Views
Charlotte, NC, United States (AHN) – Family Dollar Stores announced Wednesday fiscal second quarter earnings jumped 33 percent as revenue grew on increased store traffic and customer transactions.
The discount chain posted second quarter earnings of $112.2 million or 81 cents a share, up from $84.1 million or 60 cents a share in the same period a year earlier. The result topped expectations as analyst had forecast earnings of 78 cents a share.
Revenue in the quarter grew 4.9 percent to $2.1 billion, up from $1.99 billion a year ago as a 3.6 percent rise in same-store sales helped boost growth.
“These strong results reflect our efforts to provide our customers with more value, more convenience and a better shopping experience,” said Howard R. Levine, chairman and chief executive officer.
Family Dollar also saw increased sales activity in the period after implementing a new checkout system that accepts additional payment types, such as food stamps.
“As we increase our focus on accelerating revenue growth, I am confident that our continued efforts to broaden the appeal of our assortment, strengthen our customer communications and improve the in-store shopping experience will result in expanded market share and strong financial returns,” added Levine.
Looking ahead, Family Dollar expects fiscal third quarter same-store sales to increase 6 to 8 percent. The company, which mostly sells products for $10 or less, reported an 11 percent increase in March same-store sales.