Family Dollar Net Jumps 33 Percent in Second Quarter

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.

In a statement, Family Dollar cited its home-products area as one of its strongest departments in the second quarter.

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.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.