Family Dollar thrives on bigger average transaction
By Staff -- Home Textiles Today, 12/20/2006 1:13:00 PM
Matthews, N.C. – Family Dollar reported net income for the fiscal first quarter of $54.4 million, up 5.8% from $51.4 million for the same period one year ago. Net sales for the quarter were $1.60 billion, up 5.9% from $1.51 billion last year. Sales in comparable stores, adjusted for prepaid cellular services, increased about 0.9%.
The company said, “The increase in comparable store sales was a result of an increase in average customer transaction, which offset a slight decline in customer traffic, as measured by the number of register transactions.”
Howard Levine, chairman and ceo of the 6,200-store deep discounter, noted, "During the last several quarters, we have lowered inventory levels and improved our merchandising presentations. We have also worked to enhance our Associate development and retention efforts, and I am especially pleased with the results in stores, where our store manager retention has increased significantly.”
Gross margin as a percentage of net sales, was 34.5% in the quarter, up 90 basis points from 33.6% last year, while SG&A expenses as a percentage of sales was 28.8%, up 70 basis points from 28.1% a year ago.
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