Family Dollar Projects Better Days Ahead

The good news from Family Dollar in its quarterly earnings call was mostly in the future. The 6,300-store discount chain said it expects March comp-store sales to rise 3% to 5%, above the previous estimate of 2% to 4%. The company projects full-year comps to rise 1% to 3%.

Fiscal 2007 second-quarter earnings at the neighborhood retailer soared by 66.0% to $90.5 million from $54.5 million for the same period one year ago — but the dramatic change was due to a $45.0 million litigation charge the company had taken during the fiscal 2006 quarter.

Still, sales are climbing due to expansion, up 12.2% to $1.95 billion from $1.74 billion a year ago. Comp-store sales were up a scant 0.4%, with the company noting an increase in average transaction offsetting a decline in customer traffic.

Chairman and ceo Howard Levine pointed to Family Dollar's inventory and control initiatives, opportunistic buys, and upgrades to store layout.

He also noted that profitability continues to improve in the chain's growing roster of urban stores, as improvements are being made there in manager retention, shrinkage, and shopability.

In merchandise selection, Family Dollar's current emphasis is on food and apparel, where it has recently announced the introduction of Hanes branded goods.

Home Textiles Today research pegged Family Dollar home textiles sales at $371.5 million for 2005.

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.

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HTT August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

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