Family Dollar sees 2Q income growth

MATTHEWS, N.C. Family Dollar Stores reported that net income per diluted share for the second quarter of fiscal 2010 ended Feb. 27, increased 35% to 81 cents compared with 60 cents for the second quarter of fiscal 2009 ended Feb. 28, 2009. Net income for the quarter increased 33.4% to $112.2 million compared with net income of $84.1 million for the second quarter of fiscal 2009.

“These strong results reflect our efforts to provide our customers with more value, more convenience and a better shopping experience,” said Howard Levine, chairman and CEO. “We have invested significantly to improve processes, build merchandising capabilities and stabilize our workforce, and these investments are clearly delivering results. As we increase our focus on accelerating revenue growth, I am confident that our continued efforts to broaden the appeal of our assortment, strengthen our customer communications and improve the in-store shopping experience will result in expanded market share and strong financial returns.”

As previously reported, sales for the second quarter of fiscal 2010 were approximately $2.09 billion, or 4.9% above sales of approximately $1.99 billion for the second quarter of fiscal 2009. Comparable-store sales increased 3.6%. The increase in comparable-store sales was a result of increased customer traffic, as measured by the number of register transactions, and an increase in the value of the average customer transaction, the company reported. Sales were strong in the seasonal and electronics, home products and consumables categories. Sales of apparel and accessories were approximately flat.

“I am pleased to report that the sales momentum we saw in the second quarter has continued through March,” said Levine. “Reflecting favorable weather trends and the impact of the Easter shift, comparable-store sales for the March reporting period increased approximately 11%.”

For the third quarter, the company expects that comparable sales for the quarter will increase 6% to 8% and that earnings per share will be between 71 cents and 76 cents compared with 62 cents in the third quarter of fiscal 2009.

For the full year, the company expects that earnings per share will be between $2.48 and $2.58 compared with $2.07 in fiscal 2009.