Family Dollar Net Rises in Q4; Bloom Named COO
MATTHEWS, N.C.-Family Dollar ended its fiscal year with an 8 percent booster to its fourth-quarter net income, totaling $79.8 million. The retailer also announced that Michael Bloom has been appointed president and chief operating officer of Family Dollar, succeeding the retiring R. James Kelly.
The results for the quarter, which ended on Aug. 27, were the most recent stemming from "an ambitious, multiyear plan to accelerate revenue growth, expand operating margins and optimize our capital structure," said Howard Levine, chairman and CEO. Net sales in the quarter grew 9.1 percent to $2.1 billion, including a same-store sales gain of 5.6 percent.
Selling, general and administrative expenses, while rising 5.3 percent in dollars, dropped 101 basis points as a percentage of net sales to 27.8 percent. Gross margin was down 68 basis points to 34 percent.
Kelly is retiring after 15 years with the retailer. Before joining Family Dollar, Bloom was executive vice president of merchandising, supply chain, marketing and advertising for CVS Caremark. He had been with CVS for 20 years in a number of executive posts.
In addition, Dorlisa Flur, executive vice president and chief merchandising officer, has been promoted to vice chair of strategy and chief administrative officer. Both Bloom and Flur report to Levine.
For the fiscal year as a whole, Family Dollar posted an increase of 8.5 percent in net income to $388.4 million, and a gain of 8.7 percent in net sales to $8.5 billion. Same-store sales for the year rose 5.5 percent.