Family Dollar Boosts Second-Quarter Net 9.8 Percent
MATTHEWS, N.C.-Rising sales and higher operating margins fueled a 9.8 percent increase in Family Dollar's second-quarter net income, to $123.2 million.
Net sales jumped 8.3 percent to $2.3 billion, including a 5.1 percent pickup in same-store sales. Gross margin in the quarter, which ended on Feb. 26, rose 23 basis points to 35.7 percent. Although selling, general and administrative expenses were up 8.5 percent in dollars, they gained just 5 basis points as a percentage of sales to 26.8 percent.
Howard Levine, Family Dollar's chairman and CEO, said the retailer is reaping the benefits of initiatives targeted at increasing its operational capabilities and improving the in-store shopping experience. "These investments have provided a solid foundation for the successful launch of our strategic plan to re-accelerate revenue growth, expand operating margins and optimize our capital structure," Levine said.