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Family Dollar Stores Q2 Profit Beats Estimates (FDO)

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Family Dollar StoresFamily Dollar Stores Inc. (NYSE: FDO), an operator of a chain of more than 7,000 general merchandise retail account discount stores in 44 states, today, reported better than expected profit for the second quarter as sales climbed during the holiday season.

Family Dollar, which is the second-largest dollar store chain in the U.S., has added hundreds of food items to its stores. The company has been also giving many of its stores makeovers in an effort to appeal to low-income shoppers, who are focused on buying essential items.


For the second quarter ended February 25, the Matthews, North Carolina-based company reported net profit of $136.4 million, or $1.15 per share, compared with $123.2 million, or $0.98 per share reported for the same period in the previous year. Analysts had forecast the retailer to report a profit of $1.13 per share for the second quarter.

FDO’s sales at the chain climbed 8.6% to $2.46 billion in the second quarter. Same-store sales, a key measure for retailers, rose 4.5% in the second quarter. Sales for the quarter were driven by consumables.

Family Dollar’s gross margin for the quarter was 34.9%, down from 35.7% reported for the same period in the previous year. The decline was due to stronger sales of consumables, which have lower margins normally.

Family Dollar also provided guidance for the full year. The company expects full-year earnings to come in between $3.55 per share and $3.75 per share. This is above the company’s previous forecast of $3.50-$3.75 per share.

Family Dollar shares rose in pre-market trading today. At last check, the stock was up 0.45% to $58.50.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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