Home Shines for Family Dollar in Q3
Posted on June 29, 2011 by
MATTHEWS, N.C.-Driven by increased sales and higher average tickets, Family Dollar's net income rose 6.5 percent, to $111.1 million, in its fiscal third quarter ending on May 28.
Net sales reached a record $2.2 billion in the quarter, including a 4.7 percent gain in comparable-store sales. Among the stars in terms of the dollar-store retailer's departments was home products, which along with consumables registered the strongest sales increases in the quarter, according to a Family Dollar statement.
Although selling, general and administrative expenses rose 6.3 percent in dollars, they fell 40 basis points as a percentage of sales to 27.7 percent. Gross margin dropped 36 basis points to 36.2 percent, due again to the gain in sales of lower-margin consumables.
Howard Levine, Family Dollar's chairman and CEO, said the company made strides in the third quarter in gaining market share and executing its long-term vision. Levine expressed his confidence that Family Dollar's investments in improving the shopping experience and its profitability "will continue to deliver strong shareholder returns."