MATTHEWS, N.C.–Fourth-quarter net income for Family Dollar totaled $74 million, 23 percent ahead of the off-price retailer’s fourth-quarter net from its last fiscal year.
The quarterly results helped Family Dollar to a record fiscal year in terms of earnings per share, which totaled $2.62 or 26.6 percent more than in fiscal 2009. Net sales for the quarter were $2 billion, 8 percent greater than in the prior year and including a gain of 6.1 percent in same-store sales. Gross margin rose 20 basis points to 34.7 percent thanks to lower inventory shrinkage and increased purchase markups, and while selling, general and administrative expenses increased 5.8 percent on a dollar basis, they fell 70 basis points to 28.8 percent as a percentage of sales.
For the company’s fiscal year, which ended on Aug. 28, net income also increased 23 percent to $358.1 million, on a 6.3 percent gain in net sales to $7.9 billion.