UPDATE: Wedbush Color On FDO Target Increase

Wedbush, which raised its PT on shares of Family Dollar Stores Inc. FDO, is providing some color on the stock. “Previously reported, Q2 comps were up 5.1% — at the low end of guidance for 5%-6% as a result of severe winter storms in January — but early spring-like weather in February drove better sales of seasonal items,” Wedbush writes. “Total sales were up 8.3% to $2.263 billion, driven by consumables. Gross margin was up 30 bps, to 35.7%, due to lower shrink and higher markups, partially offset by higher freight and unfavorable mix shift toward consumables. “SG&A was flat at 26.8%, as leverage of most expenses was offset by expanded store hours, store renovations, and accelerated new store growth. Cash was down year over year due to the share repurchase program.” Family Dollar Stores closed Wednesday at $52.25.