Family Dollar 3Q profits climb 6%

Third-quarter profits at Family Dollar Stores advanced by 6.9 percent, to $53.5 million from $50.1 million last year, despite sharply higher costs for new store openings, coupled with rising utility and health care expenses.

Sales at the rapidly growing chain advanced by 15.1 percent, to $887.0 million from $770.8 million last year, largely on the strength of new store openings. Same-store sales moved up by 3.6 percent, including an 8.5 percent increase in hardlines sales and a decrease of 10.2 percent in softlines sales.

Average gross margin narrowed slightly, to 35.2 percent from 35.3 percent, while costs climbed higher by 60 basis points, to 25.7 percent from 25.1 percent a year ago. More than half the rise in costs, said Howard Levine, ceo, was due to sharply climbing energy costs. He said the increase in earnings came "despite the fact that utility and health care costs continued to grow at a faster rate than sales" in addition to opening 31 more stores than in the year-ago period.

Family Dollar plans to open about 120 more stores next quarter. Going forward, the chain will open about 525 new stores next year, closing 50.

Family Dollar Stores

Qtr. 6/2/01 (x000) 2001 2000 %CHG
Sales $887,037 $770,776 15.1
Oper. income (EBIT) 84,235 78,996 6.6
Net income 53,489 50,131 6.7
Per share (diluted) 0.31 0.29 6.9
Average gross margin 35.2% 35.3%
SG&A expenses 25.7% 25.1%
Nine months 2001 2000 %CHG
Sales 2,744,552 2,342,797 17.1
Oper. income (EBIT) 244,684 223,160 9.6
Net income 155,405 141,695 9.7
Per share (diluted) 0.90 0.82 9.8
Average gross margin 34.1% 34.3%
SG&A expenses 25.2% 24.8%

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!