Bloom Leaves Family Dollar; Company Q1 Net Falls 2.8 Percent
MATTHEWS, N.C.-Michael Bloom, president and chief operating officer of Family Dollar, has left the dollar-store retailer "to pursue other interests," according to a company statement.
The retailer announced Bloom's departure in its release on its first-quarter financial results. In the quarter, which ended on Nov. 30, net income declined 2.8 percent to $78 million. Net sales tallied $2.5 billion, up 3.2 percent and including a 2.8 percent drop in same-store sales.
Family Dollar said it will conduct a search for a new president and chief operating officer. Howard Levine, chairman and CEO, said, "Since joining Family Dollar in 2011, Mike has been a valued part of our team."
First-quarter sales for Family Dollar were strongest in its consumables category, whose sales rose 4.7 percent. Gross margin increased 14 basis points to 34.3 percent. Selling, general and administrative expenses gained 5.2 percent in dollars and 56 basis points as a percentage of sales, to 29.5 percent.
Based on the results for the second quarter thus far, Family Dollar has reduced its earnings expectations for both the quarter and the full year. Levine said same-store sales in December were off 3 percent, driven primarily by a drop in customer transactions. "In addition, we reacted to softness in discretionary categories by leveraging promotions more than we had originally planned," he said, adding that the company expects these macroeconomic trends to continue.