Family Dollar Net Jumps 33 Percent in Second Quarter
April 7, 2010,
MATTHEWS, N.C.-Net income for Family Dollar reached $112.2 million in the second quarter, 33 percent ahead of last year's second quarter.
Gains in sales and gross margin, along with a reduction in expenses as a percentage of sales, helped bolster the retailer's bottom line in the quarter. Net sales rose 4.9 percent to $2.1 billion, including a 3.6 percent pickup in same-store sales.
Gross margin added on 174 basis points as a result of increased sales of higher-markup merchandise and reduced markdown expenses. Selling, general and administrative expenses rose 4.1 percent on a dollar basis, but declined by 20 basis points as a percentage of sales.
Noting the company's positive performance in the quarter, Howard Levine, chairman and chief executive officer, added that the sales momentum has continued into the current quarter. Family Dollar's comparable-store sales in March rose an impressive 11 percent, Levine said. For the third quarter as a whole, the company projected a same-store sales increase of from 6 to 8 percent.