Citi Releases FDO F2Q11 EPS Review

Citi has issued a review of Family Dollar's FDO F2Q11 EPS. According to Citi, "FDO's F2Q11 EPS were in-line with our forecast and consensus, driven by better-than-expected GM expansion and expense deleverage offset by lower share repurchases vs. our estimates. FDO's focus on developing private brands and global sourcing, in addition to continued inventory management and shrink improvement, helped to mitigate mix pressures in the quarter and drove upside to gross margin." FDO has a Buy Rating and a $60 PT. FDO closed yesterday at $52.25 a share.