Family Dollar posts strong quarter, promotes home
March 23, 2006,
Matthews, N.C. -- Enhanced food assortments, expansion of the urban store initiative and continued focus on its treasure hunt merchandise strategy are top of mind looking ahead this fiscal year at Family Dollar, the company reported during its second-quarter earnings call today.
As a result of ongoing improvements in the strategy’s execution, “both our home and seasonal department performed well, supported by in-store presentation efforts and advertising and marketing programs,” explained Howard Levine, chairman of the board and ceo.
Second quarter profits fell by 31.9%, to $54.5 million, clipped by a $45.0 million one-time litigation charge. But pull that charge out of the equation, and the low-cost retailer actually did better than Wall Street had been expecting, pushing earnings up by 10.4%, to $0.53 per share. In early trading after the news came out, Family Dollar shares climbed by $1.14 per share, or 4.5% in value, to $26.97.
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