Home Shines for Family Dollar in Q3

       

       

MATTHEWS, N.C.–Driven by increased sales and higher average tickets, Family Dollar’s net income rose 6.5 percent, to $111.1 million, in its fiscal third quarter ending on May 28.

Net sales reached a record $2.2 billion in the quarter, including a 4.7 percent gain in comparable-store sales. Among the stars in terms of the dollar-store retailer’s departments was home products, which along with consumables registered the strongest sales increases in the quarter, according to a Family Dollar statement.

Although selling, general and administrative expenses rose 6.3 percent in dollars, they fell 40 basis points as a percentage of sales to 27.7 percent. Gross margin dropped 36 basis points to 36.2 percent, due again to the gain in sales of lower-margin consumables.
Howard Levine, Family Dollar’s chairman and CEO, said the company made strides in the third quarter in gaining market share and executing its long-term vision. Levine expressed his confidence that Family Dollar’s investments in improving the shopping experience and its profitability “will continue to deliver strong shareholder returns.”

Posted in News, Retail.

Last updated: June 29, 2011