Merger costs take toll on Family Dollar Q3 profits

Matthews, N.C. – The pending merger with Dollar Tree Inc. took a toll on Family Dollar’s profits in the third quarter.



Expenses related to the merger drove Family Dollar’s net income down 1.5% to $79.9 million from $81.1 million the year-ago period, below Wall Street expectations.



Net sales fared better, rising 3% to $2.73 billion from $2.66 billion, with same-store sales increasing 0.7%. Consumables drove net sales growth, while an increase in the number of customer transactions spurred improved same-store sales, partially offset by a decrease in the average customer transaction value.



Family Dollar expects final FTC approval of its Dollar Tree merger to close in early July. As part of the approval process, Dollar Tree has entered into a definitive agreement to divest 330 Family Dollar stores to Sycamore Partners.