Home / Knowledge / News / Apparel/Garments / Family Dollar Q2 FY'13 sales rise 17.7%
Family Dollar Q2 FY'13 sales rise 17.7%
10
Apr '13
Family Dollar Stores, Inc. reported that for the second quarter of fiscal 2013 ended March 2, 2013, net sales increased 17.7% to $2.89 billion and net income per diluted share for the quarter increased 5.2% to $1.21.

Fiscal 2013 Second Quarter Results

Net sales for the second quarter ended March 2, 2013, increased 17.7% to $2.89 billion from $2.46 billion in the second quarter of fiscal 2012 ended February 25, 2012. Consistent with the National Retail Federation Calendar, the second quarter of fiscal 2013 included 14 weeks as compared to 13 weeks in the second quarter of fiscal 2012.

The Company estimates this extra week contributed approximately $189 million in sales and $0.07 of earnings per diluted share. Sales were strongest in the Consumables category, which increased 26.6% during the quarter, driven primarily by strong growth in tobacco, food, and health and beauty aids. During the quarter, the Company opened 126 new stores, closed 17 stores, and renovated, relocated or expanded 159 stores.

Comparable store sales for the 14-week period ended March 2, 2013, increased 2.9% when compared with sales for the similar 14-week period last year. Comparable store sales for the quarter increased as a result of higher customer traffic and an increase in the average customer transaction value.

Gross profit for the quarter increased 12.8% to $967.1 million, or 33.4% of net sales, compared to $857.4 million, or 34.9% of net sales, in the second quarter of fiscal 2012. As a percentage of sales, the impact of stronger sales of lower-margin consumables and increased inventory shrinkage was partially offset by lower freight expense and higher purchase markups.

Selling, general and administrative expenses, as a percentage of net sales, were 25.9% in the quarter compared to 26.1% in the second quarter of fiscal 2012. Most expenses were leveraged during the quarter. Additionally, as a percentage of net sales, lower incentive compensation expense was offset by higher marketing expense.

The effective income tax rate in the quarter was 35.6% as compared to 36.5% in the second quarter of fiscal 2012. The decrease in the effective tax rate was due primarily to the legislative reinstatement of certain federal tax credits and foreign tax benefits associated with the Company’s global sourcing efforts.

Net income for the quarter was $140.1 million compared to net income of $136.4 million for the second quarter of fiscal 2012.

The Company’s merchandise inventories at March 2, 2013, were $1.53 billion compared with $1.22 billion at February 25, 2012. Average inventory per store at the end of the quarter was 17.1% higher than the average inventory per store at the end of the second quarter of fiscal 2012. The increase in inventories was the result of investments to expand the Company’s Consumable categories, primarily health and beauty aids, tobacco and food.

In the first half of fiscal 2013, capital expenditures were $409.7 million compared with $236.3 million in the first half of fiscal 2012. The growth in capital expenditures was primarily due to increased investments in new stores. During the second quarter, the Company completed a sale-leaseback transaction for 126 stores with net proceeds, after transaction expenses, of $162.4 million.

During the first half of fiscal 2013, the Company repurchased approximately 1.2 million shares of its common stock for a total cost of $75.0 million. As of March 2, 2013, the Company had the authorization to purchase up to an additional $370.8 million of its common stock.

Family Dollar


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

CB&I bags ethylene technology contract from Lianyungang

Textiles | On 21st Apr 2018

CB&I bags ethylene technology contract from Lianyungang

CB&I, a leading provider of technology and infrastructure for the...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search