MATTHEWS, N.C., March 3 /PRNewswire-FirstCall/ -- Family Dollar Stores,
Inc. (NYSE: FDO), a discount store chain operating 5,601 stores in 44 states,
reported sales for the four week period ended February 26, 2005, of
approximately $458.1 million, or 13.3% above sales of $404.3 million for the
similar period in the prior fiscal year. Sales in existing stores for the
four week period ended February 26, 2005, increased approximately 4.9% above
existing store sales for the similar period in the prior fiscal year,
including increases of approximately 5.3% in sales of hardlines and
approximately 3.8% in sales of softlines.
For the thirteen week period ended February 26, 2005, sales were
approximately $1.587 billion, or 13.1% above sales of $1.403 billion for the
similar period in the prior fiscal year. Sales in existing stores for the
thirteen week period ended February 26, 2005, increased approximately 4.5%
above existing store sales for the similar period in the prior fiscal year,
including an increase of approximately 5.8% in sales of hardlines and no
change in sales of softlines.
While the Company is pleased with the recent sales improvement, sales of
lower margin consumables continue to outpace sales growth. As in the last two
quarters, this ongoing shift of the merchandise mix and the continuing adverse
impact of shrinkage will negatively impact the gross profit margin in the
second quarter ended February 26, 2005. In the second quarter, the Company
also incurred expenses as planned in connection with the urban initiative and
the start of the installation in stores of coolers for the sale of perishable
goods.
For the twenty-six week period ended February 26, 2005, sales were
approximately $2.967 billion, or 12.0% above sales of $2.648 billion for
the similar period in the prior fiscal year. Sales in existing stores for the
twenty-six week period ended February 26, 2005, increased approximately 3.6%
above existing store sales for the similar period in the prior fiscal year,
including an increase of approximately 5.2% in sales of hardlines and a
decrease of approximately 2.0% in sales of softlines.
In response to clarifying guidance recently provided by the Securities and
Exchange Commission, the Company is reviewing and expects to correct its lease
accounting practices related to store locations. The Company expects to
complete the review by the March 22, 2005, date of the release of its
financial results for the second quarter ended February 26, 2005. This change
in accounting practice will not impact historical or future cash flows.
As of February 26, 2005, the Company had 5,600 stores in operation,
including 90 stores that were opened during the thirteen week period ended on
that date.
The Company's plan is for sales in existing stores in the five week period
ending April 2, 2005, to increase in the 3% to 5% range. Sales are expected
to be aided by the distribution of an advertising circular in the last week of
the period.
Family Dollar will host a conference call on Tuesday, March 22, 2005, at
10:00 A.M. ET to discuss the financial results for the second quarter ended
February 26, 2005. If you wish to listen, please call 800-988-9433 for
domestic USA calls and 210-234-0000 for international calls at least 10
minutes before the call is scheduled to begin. The passcode for the call is
"FAMILY DOLLAR." A replay of the call will be available from 1:00 P.M. ET,
March 22, 2005, through March 29, 2005, by calling 888-667-5784 for domestic
USA calls and 402-220-6427 for international calls. There is no passcode for
the replay.
There also will be a live webcast of the conference call that can be
accessed at http://www.familydollar.com/investors.aspx?p=irhome or by clicking
on the webcast icon on the "Investors" page at http://www.familydollar.com .
A replay of the webcast will be available at the same address after 2:00 P.M.
ET, March 22, 2005.
Certain statements contained in this press release which are not
historical facts are forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements address the Company's plans and activities or
events which the Company expects will or may occur in the future. A number of
important factors could cause actual results to differ materially from those
expressed in any forward-looking statements. Such factors include, but are
not limited to, competitive factors and pricing pressures, general economic
conditions, the impact of acts of war or terrorism, changes in consumer demand
and product mix, unusual weather that may temporarily impact sales, inflation,
merchandise supply constraints, general transportation or distribution delays
or interruptions, dependence on imports, changes in currency exchange rates,
trade restrictions, tariffs, quotas, and freight rates, availability of real
estate, costs and delays associated with building, opening and operating new
distribution facilities and stores, costs, potential problems and achievement
of results associated with the implementation of new programs, systems and
technology, including supply chain systems, store technology, cooler
installations and urban initiative programs, changes in food and energy prices
and their impact on consumer spending and the Company's costs, legal
proceedings and claims, changes in shrinkage, changes in health care and other
insurance costs, and the effects of legislation and regulations on wage levels
and entitlement programs. Consequently, all of the forward-looking statements
made are qualified by these and other factors, risks and uncertainties.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release. The Company does
not undertake to publicly update or revise its forward-looking statements even
if experience or future changes make it clear that projected results expressed
or implied in such statements will not be realized.
SOURCE Family Dollar Stores, Inc.
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Related links:
http://www.familydollar.com
http://www.familydollar.com/investors.aspx?p=irhome
Company News On-Call:
http://www.prnewswire.com/comp/300875.html
CONTACT:
George R. Mahoney, Jr., Executive Vice
President of Family Dollar Stores, Inc., +1-704-814-3252
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