UPDATE: US: Family Dollar Q3 apparel sales rise 1.1%
Despite booking record third quarter results which saw higher sales contribute to a 12.1% jump in profit, US discount retailer Family Dollar Stores admits that demand for more discretionary categories like apparel continues "to be challenged."
That said, sales of apparel and accessories edged up 1.1% to $226.8m during the quarter, up from $224.2m a year earlier. But over the first three-quarter of the financial year, the category has seen sales fall 2.7% to $618.9m.
The company, which sells a range of products including consumables such as food, electronics, health and beauty items, and tobacco, competes with grocers, convenience stores and mass merchants like Wal-Mart from more than 7,200 stores.
"It is clear that consumers continue to face difficult economic headwinds," CEO Howard Levine, Chairman and CEO told analysts on an earnings call yesterday (28 June). "While consumer expectations for inflation have moderated recently, unemployment rates have given up gain and consumer confidence is deteriorating."
The retailer's lower-income shoppers are "very stressed," Levine continued, and "very focused on value." The "paycheck cycle" in which consumers delay purchases until they have been paid, is "probably growing in significance," he added.
As well as economic uncertainty, apparel sales have been buffeted by the weather - although despite an overall volatile performance from the category, warm weather in March helped apparel deliver its strongest performance in five quarters, the company said.
The retailer is also optimistic that the addition of Debra Remme as its new vice president of apparel will help put apparel on the right track. Remme, who joined during the quarter, will work under Paul White, who was promoted to chief merchandising officer in December after serving as senior vice president of apparel, home and seasonal.
In the three months to 26 May Family Dollar posted a net profit of US$124.5m as net sales climbed 9.6% to reach $2.36bn. Comparable-store sales rose 5%.
US brands and retailers were baling out of Bangladesh even before the fire at the Tazreen Fashion factory killed more than 110 people at the end of last month. And given the subsequent criticism aimed...
Among the most-read comment articles on just-style this year were a look at China's competitiveness and the sourcing potential of Bangladesh and Burma, as well as the challenges facing retailers inclu...
In the wake of recent factory fires in Bangladesh and Pakistan that have killed hundreds of workers, a US-based labour rights group has accused apparel buyers of hiding problems identified in audits....
Activists are to stage candlelight vigils at Edinburgh Woollen Mill stores across the UK this week, urging the retailer to pay compensation to the victims and families of those killed and injured in t...
A group of US lawmakers is calling on President Barack Obama to take action in the wake of the recent fire in Bangladesh to ensure that clothing imported into the US - particularly products for the mi...
The most read stories on just-style this week include clothing and children's footwear boosting UK retail sales in November, a look at where the Tazreen fire leaves Bangladesh, and Reebok announcing i...
- What the EU-Vietnam trade deal means for duties
- Ultimate frontier Myanmar uplifts Bogart Lingerie
- US apparel retailers' January 2016 sales roundup
- Esquel backs Chinese Sea Island cotton production
- US apparel import growth led by Bangladesh
- Sears looks to lift apparel via sourcing changes
- Eco-friendly garment factory opens in Bangladesh
- Direct sourcing helps M&S narrow the gap with Next
- Clothing and sports chains in activewear battle
- Nike accelerates digital strategy with new hire
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Wearable technology: The future market potential for smart garments and e-textiles
- Global market review of denim and jeanswear – forecasts to 2021
- Practical Price Negotiation
- Wearable Technology Market by Product, Application, Type, & Geography - Global Forecast to 2020