Family Dollar posts strong Q3 results
HTT Staff -- Home & Textiles Today, 7/10/2013 2:32:26 PM
Matthews, N.C. - Family Dollar Stores generated sales and earnings on the higher end of its third quarter guidance, driven largely by strength in consumables.
Net income for the quarter fell 3% to $120.9 million, or $1.05 per share. Sales increased 9.0% to $2.57 billion, and comps were up 2.9%, the result of an increase in the average customer transaction value and higher customer traffic.
Sales were strongest in the consumables category, which jumped 14.8% during the quarter, with strong growth in food, health and beauty aids, and tobacco.
Noted Howard R. Levine, chairman and ceo said discretionary sales remained challenged "as our customers have been forced to make spending choices between basic needs and wants. Consistent with market trends, we expect that our customers will continue to face financial headwinds."
Looking ahead, in the fourth quarter Family Dollar expects to anniversary many of the promotional initiatives that were launched a year ago. Additionally, the company and believes that sales in discretionary categories will continue to be pressured.
Based on June sales trends, the company expects that comparable store sales in the fourth quarter will increase around 2%, and earnings per diluted share will be between $0.82 and $0.87 per share compared with $0.69 per share in the fourth quarter of fiscal 2012. Included in the results for the fourth quarter of fiscal 2012 was a litigation charge of $0.06 per diluted share.
Family Dollar said it now expects that diluted earnings per share in fiscal 2013 will be between $3.77 and $3.82 compared to $3.58 in fiscal 2012.
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