Family Dollar posts 1Q profit surge, strong December

MATTHEWS, N.C. Family Dollar Stores reported that net income per diluted share for the first quarter of fiscal 2010 ended Nov. 28, 2009, increased 16.7% to 49 cents compared with 42 cents for the first quarter of fiscal 2009 ended Nov. 29, 2008. Net income for the quarter increased 14% to $67.6 million compared with net income of $59.3 million for the first quarter of fiscal 2009.

As previously reported, sales for the first quarter of fiscal 2010 were approximately $1.823 billion, or 3.9% above sales of approximately $1.754 billion for the first quarter of fiscal 2009. Comparable-store sales increased 2.4%. The increase in comparable-store sales was a result of an increase in customer traffic, as measured by the number of register transactions; average transaction value for the quarter was flat, the company reported. Sales were strongest in the consumables category.

“We have increased our relevancy across our diverse customer base and are positioned to accelerate top line growth,” said Howard Levine, chairman and CEO. “I am confident that our efforts to broaden the appeal of our assortment, strengthen our customer communications and improve the in-store shopping experience will result in continued market share growth and strong financial returns.”

Levine added that the company did well during the holiday season, posting an approximate 4% gain in same-store sales for the December reporting period.

For the second quarter, the company expects that comparable sales for the quarter will increase 2% to 4% and that earnings per share will be between 65 cents and 70 cents compared with 60 cents in the second quarter of fiscal 2009.

For the full year, the company expects that net sales for fiscal 2010 will increase 4% to 6% as compared with fiscal 2009. Reflecting these expectations, the company continues to project that earnings per share will be between $2.15 and $2.35 in fiscal 2010.