US: Family Dollar Stores reported record Q3 sales
US discount retailer Family Dollar Stores today (29 June) booked "record" third-quarter sales and profits.
The company reported a 6.5% increase in net income to US$111.1m for the three months to 28 May. Operating profit was up 8.4% at $170.1m.
The rise in profits came as Family Dollar reported a 7.8% rise in net sales for the quarter to $2.15bn. Comparable-store sales were up 4.7% on increased customer traffic and a rise in the average value of a transaction.
In March, Family Dollar rejected a takeover bid from activist US investor Nelson Peltz. Trian Group, Peltz's fund, first acquired shares in Family Dollar last July and said then that the retailer's performance could improve.
Family Dollar chairman and CEO Howard Levine has defended the company's record and said the retailer had "accomplished much this quarter to position us to capture greater market share and execute our longer-term vision".
He added: "I remain confident that our strategy of providing customers with value and convenience, combined with the impactful investments we are making to improve the shopping experience in our stores and our profitability, will continue to deliver strong shareholder returns."
However, the retailer's gross margin as a percentage of sales dipped from 36.6% in last year's third quarter to 36.2% this year. Family Dollar pointed to "stronger" sales of lower-margin consumables, increased promotions and higher freight costs.
Help test our new apparel sourcing tool.
Family Dollar has announced the appointment of Paul White as executive vice president and chief merchandising officer....
US investor Nelson Peltz has backed away from an aggressive takeover of Family Dollar Stores after a deal with the discount retailer....
US discount retailer Family Dollar Stores Inc says it intends to open up to 500 stores next year after reporting record fourth quarter and full-year sales and earnings....
US discount retailer Family Dollar Stores Inc today (29 September) named Edward Garden, one of the founders of Trian Partners, as a director - as part of an agreement that limits the investment firm's...
- Rana Plaza four years on – Timeline of change
- Why collaboration is key to fashion supply chains
- Industry groups reaffirm commitment to Bangladesh
- Trump and Brexit get a dose of pragmatism
- Using worker surveys to drive supply chain change
- Adidas to digitalise Speedfactory concept
- Nike filed patent for "reinforced denim"
- M&S extends sourcing deal with Lindsey brothers
- Gap unveils five-year sustainable fibres pledge
- US Q1 in brief – Columbia Sportswear, Amazon
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar