Family Dollar 2Q Tops Views, Raises Outlook

Family Dollar FDO said Wednesday it grew its fiscal second-quarter profits by a stronger-than-expected 9.8% and forecast full-year results that would exceed Wall Street's estimates. The Charlotte-based discount retailer said it earned $123.2 million, or 98 cents a share, in the quarter ended February 26, compared with a profit of $112.2 million, or 81 cents a share, a year earlier. Analysts had been calling for EPS of 97 cents. Sales increased 8.3% to $2.26 billion, matching consensus calls from analysts. As was previously reported, same-store sales increased 5.1% amid stronger customer traffic. “Over the last several years, we have accelerated capability-building investments and increased our efforts to improve the in-store shopping experience,” CEO Howard Levine said in a statement. “These investments have provided a solid foundation for the successful launch of our strategic plan to re-accelerate revenue growth, expand operating margins and optimize our capital structure.” Continue reading the article.