Just two weeks after Family Dollar adopted a “poison pill” shareholder’s rights plan, billionaire investor Carl Icahn, who recently disclosed he has a 9.4% stake in the discount retailer, has fired back.
Former Sam’s Club merchant Jason Reiser just got his second promotion in seven months at Family Dollar and now the newly anointed chief merchandising officer has to restore sales growth at the retailer’s 8,000 stores.
Family Dollar Stores announced Wednesday that it plans to open 450 to 500 new stores in fiscal 2012, a 50% jump compared with the number of openings in fiscal 2011, and will renovate, relocate or expand over 1,000 locations.
Increased customer traffic during Family Dollar’s third quarter may have helped the company produce a 4.7% same-store sales increase, however earnings per share that advanced 18.2% to 91 cents were four cents shy of analysts’ consensus estimate of 95 cents.
An expanding number of consumers in search of value and an improved shopping experience at Family Dollar propelled the company to its strongest first-quarter same-store sales increase in 12 years, but profits for the period and the earnings outlook were below analysts’ estimates.