Family Dollar Stores reported a net sales increase of 17.7% to $2.89 billion for its second quarter. Net income per diluted share for the quarter increased 5.2% to $1.21.
Despite solid sales trends at Family Dollar during the company’s first quarter ended November 24, margins contracted and profits were less than expected.
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.
Profit grew by nearly 10% to $123.2 million and sales advanced 8.3% to nearly $2.3 billion, as Family Dollar remained on a consistent growth trajectory during its second quarter ended Feb. 27.
Family Dollar today showed why dollar stores are such a hot commodity right now by reporting a comparable-store sales increase of 5.1% for the second quarter ended Feb. 26.
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.
MATTHEWS, N.C. - Family Dollar Stores reported that net income per diluted share for the year ended Aug. 28, increased 26.6% to $2.62 compared with $2.07 for the year ended August 29, 2009.