Family Dollar Stores, Inc. (FDO), the operator of self-service retail discount store chains in the United States , recently reported sales results for second-quarter 2010, which ended on Feb 27, 2010.
Based in Matthews, North Carolina, Family Dollar said that net sales rose 4.9% to $2.09 billion from $1.99 billion delivered in the prior-year quarter. Comparable-store sales for the quarter also jumped 3.6%. The company witnessed robust sales during the quarter in the Seasonal, Home and Consumable categories.
The company’s point-of-sale technology and store realignment initiatives enable it to drive traffic, meet customer-oriented demand and improve in-store shopping experience. Cash-strapped consumers are now prioritizing their purchases and looking for low-priced options. The company trades in merchandise generally priced in the range from under $1 to $10.
The better-than-expected sales results and favorable gross profit forecast have prompted management to raise its second-quarter 2010 earnings guidance. Management now expects second-quarter 2010 earnings between 75 cents and 80 cents a share, which would easily beat the current Zacks Consensus Estimate of 67 cents.
Earlier, management had expected earnings in the range of 65 cents to 70 cents a share. Family Dollar’s strategic initiatives to improve merchandising and store operations have helped grow the top and bottom lines.
Family Dollar, which expects to report its second-quarter 2010 financial results on April 7, currently operates more than 6,600 stores in 44 states.
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