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Family Dollar 3q Sales Fall Short

(Filed Under Financial and General Interest News). Family Dollar Stores Inc., a discount chain selling a variety of household products and apparel including basics and intimate apparel, reported that shares were down 3 percent during the third quarter, which ended in May.

Consumer spending in May stayed low, even after a 10-month increase. Family Dollar must also deal with the rising costs of goods as they cater to a demographic of households making $40,000 or less. The chain used deep discounts and promotions to clear out old merchandise that had not been selling.

Family Dollar’s income for the third quarter rose to $111.1 million, or 91 cents per share, from $104.4 million, or 77 cents per share, a year ago. Analysts had expected the company to earn 95 cents per share for the third quarter. Net sales rose 7.8 percent to $2.15 billion while same-store sales rose 4.7 percent. Gross profit was 36.2 percent in the third quarter versus 36.6 percent in the third quarter of 2010.

Family Dollar Stores Inc. operates more than 6,880 discount stores in 44 states.

more Financial and General Interest News >>

Published 06-30-2011 by Katherine Rautenberg

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