Family Dollar Q2 profit edges up; opening 500 stores this year
Matthews, N.C. -- Family Dollar Stores reported Wednesday that net income for the quarter ended March 2 edged up to $140.1 million, compared with $136.4 million in the year-ago period.
Sales increased 17.7% to $2.89 billion from $2.46 billion, and same-store sales rose 2.9%.
“Following a difficult December, we were pleased with our sales results in early January,” said Howard Levine, chairman and CEO. However, he added that as the company moves into the second half, “our discretionary sales continue to be challenged by both the financial pressures facing our customers as well as unseasonably cold spring weather. Given this uncertainty, we have adjusted our plans to reflect lower than anticipated Home and Apparel sales as our customers’ discretionary spend is expected to remain constrained.”
Still, Levine said, the company remains on track to open approximately 500 new stores in 2013 and close 30 to 50. CapEx is forecasted to range from $650 million to $700 million to support new store openings, store renovations, merchandising initiatives, and expansion of the Family Dollar supply chain.