Family Dollar Looks to Second Half
April 7, 2008,
Family Dollar posted lower profits for the second quarter and lowered its guidance for the year, although executives said they expect the second half of the fiscal year to be slightly better.
Net income for the quarter ended March 1 fell 30% to $63.3 million, or 45 cents per share — below the 42 cents per share analysts had expected. Sales slid 5.9% to $1.83 billion, with comps flat.
For the first half, net income tumbled 20% to $115.2 million. Sales trailed down 0.9%to $3.5 billion, with a 0.5% comp decline.
Family Dollar now expects fiscal year earnings of $1.50 to $1.60. It had previously issued guidance of $1.56 to $1.64 in earnings for the year.
Expanding space for in an additional 2,700 stores is a key merchandising strategy this year for the 6,500-unit neighborhood discount chain, which is No.13 on the HTT Top 50 Retailing Giants list, with 2006 home textiles sales of $400 million.