Before the opening bell on Wednesday, discount retailer Family Dollar (FDO ) reported lower profits for the second quarter, but beat analysts’ estimates.
FDO's Earnings in Brief
- The company reported earnings of $76.7 million, or 67 cents per share, down from $90.9 million, or 80 cents per share, last year.
- Excluding special items, EPS came in at 74 cents – above analysts’ view of 73 cents.
- Revenue increased 3% to $2.8 billion, which matched analysts’ view.
- Same-store sales rose just 0.5%, while analysts’ expected to see a 1.7% increase in same store sales.
Howard R. Levine, Chairman and CEO commented: “We continue to see tangible benefits from the investments we have made to strengthen our value proposition for customers. Our comparable store sales and customer traffic trends are improving, and we are beginning to see stabilization in key categories. While our trends in late-February were adversely impacted by severe winter weather, our sales trends in March rebounded nicely, reflecting both improved traffic trends and the benefit of an earlier Easter."“We are excited about the pending merger with Dollar Tree, and our teams are working to ensure a successful integration.”
The company paid its last 31 cent dividend on October 15.
Shares of FDO were inactive during premarket trading Wednesday. The stock has been flat YTD.