MATTHEWS, N.C.–The tough economic environment and a shorter holiday sales period in 2007 took a bite out of Family Dollar’s bottom line for the second quarter ended March 3.
Net income dropped to $63.3 million from $90.5 million from the year-ago quarter.
As previously reported, net sales fell 5.9 percent to $1.83 billion. The second quarter of fiscal 2008 included one fewer week of holiday sales and one fewer week of sales compared with the second quarter of fiscal 2007.
“Our customers continue to react to the current economic environment by limiting their discretionary spending,” said Howard Levine, chairman and chief executive officer, in a statement. “This was particularly apparent in our stores during this past holiday season. In addition, our second-quarter performance was pressured by both the loss of one week of holiday sales and one less week of sales as compared with the second quarter of fiscal 2007. Despite these challenges, I am pleased with our expense control and inventory management this quarter, especially within such a volatile economic environment.”