Family Dollar Third-Quarter Net Grows 19 Percent
Posted on July 7, 2010 by
MATTHEWS, N.C.-Third-quarter net income for Family Dollar jumped 19 percent to $104.4 million, which pushed its earnings per share to 77 cents, a new record for the quarter.
The retailer accomplished this largely on an 8.4 percent gain in net sales, which finished the quarter at $2 billion and which included a same-store sales increase of 7 percent. Family Dollar's gross margin rose 37 basis points to 36.6 percent, thanks to reductions in markdown expenses and inventories. While selling, general and administrative expenses increased 6 percent, they fell as a percentage of sales by 61 basis points to 28.1 percent.
In a statement from the company, Howard Levine, chairman and chief executive officer, said the third quarter marked Family Dollar's ninth consecutive quarter of double-digit growth in earnings per share. Levine added that while Family Dollar's fourth fiscal quarter is "off to a good start," the environment remains challenging for the retailer because "customers continue to buy close to need."