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

Textiles | On 22nd Feb 2017

Bangladesh exporters want duty-free access to US, Brazil

Garment and apparel exporters of Bangladesh are seeking duty-free...

Textiles | On 22nd Feb 2017

India to produce 341 lakh bales cotton in 2016-17: CAI

The Cotton Association of India (CAI) has maintained in its January...

Textiles | On 22nd Feb 2017

'India to be self-sufficient in silk production by 2020'

Indian could be self-sufficient in silk production by the year 2020...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search