MATTHEWS, N.C., May 5 /PRNewswire-FirstCall/ -- Family Dollar Stores, Inc.
(NYSE: FDO), a discount store chain operating 5,656 stores in 44 states,
reported sales for the four week period ended April 30, 2005, of approximately
$432.8 million or 8.7% above sales of $398.3 million for the similar period in
the prior year. Sales in comparable stores for the four week period ended
April 30, 2005, increased approximately 0.9% above comparable store sales for
the similar period in the prior year, including an increase of approximately
1.2% in sales of hardlines and a decrease of approximately 0.1% in sales of
softlines.
Sales of food, including candy, and toys were adversely impacted by the
shift of Easter from the April reporting period last year to the March
reporting period this year. Sales of apparel also continued to be below the
Company's plan. The difficult economy, including higher energy prices, for
the Company's low and low-middle income customer base has impacted spending on
apparel and other more discretionary merchandise.
For the nine week period ended April 30, 2005, sales were approximately
$985.5 million, or 9.7% above sales of $898.7 million for the similar period
in the prior year. Sales in comparable stores for the nine week period ended
April 30, 2005, increased approximately 1.7% above comparable store sales for
the similar period in the prior year, including an increase of approximately
2.7% in sales of hardlines and a decrease of approximately 1.8% in sales
of softlines.
For the thirty-five week period ended April 30, 2005, sales were
approximately $3.952 billion or 11.4% above sales of $3.546 billion for the
similar period in the prior year. Sales in comparable stores for the thirty-
five week period ended April 30, 2005, increased approximately 3.1% above
comparable store sales for the similar period in the prior year, including an
increase of approximately 4.6% in sales of hardlines and a decrease of
approximately 1.9% in sales of softlines.
As of April 30, 2005, there were 5,650 stores in operation, including 33
stores that were opened during the four week period ended on that date.
The Company also revised its earnings guidance for the third quarter
ending May 28, 2005. Previously, the Company's plan had been for net income
per diluted share of Common Stock in the third quarter to be down slightly
from the third quarter in the prior fiscal year as a result of ongoing
investments in the urban and cooler initiatives and an expected decline in
gross profit margin. This plan also was based on the assumption that sales in
comparable stores would increase in the 3% to 5% range in the third quarter
this fiscal year. The Company now expects sales in comparable stores in the
third quarter to increase approximately 2%, assuming an increase of
approximately 2% to 4% in the May reporting period. The Company also expects
the decline in the gross profit margin to be greater than previously
anticipated primarily as a result of the ongoing shift of the merchandise mix
to more lower margin basic consumables, increased shrinkage and freight costs,
and higher markdowns due to the shortfall in sales of apparel and other
seasonal goods. With comparable store sales below plan, and with the
projected decline in the gross profit margin, the Company's current plan is
for net income per diluted share of Common Stock in the third quarter to be
between $.33 and $.37, compared to $.42 in the third quarter of the prior
fiscal year.
As returns on investments increase and gross profit margin pressures
mitigate, the Company's current plan is for net income per diluted share of
Common Stock in the fourth quarter ending August 27, 2005, to be between $.24
and $.27, compared to $.25 in the fourth quarter of the prior fiscal year.
This guidance is also based on the assumption that sales in comparable stores
in the fourth quarter will increase in the 2% to 4% range.
Certain statements contained in this press release or in other press
releases, public filings, or other written or oral communications made by the
Company or our representatives, 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, activities or events which the Company expects
will or may occur in the future. These forward-looking statements may be
identified by the use of the words "plan," "estimate," "expect," "anticipate,"
"probably," "should," "project," "intend," "continue," and similar terms and
expressions. Various risks, uncertainties and other factors could cause
actual results to differ materially from those expressed in any forward-
looking statements. Such risks, uncertainties and other factors include, but
are not limited to, competitive factors and pricing pressures, changes in
economic conditions, the impact of acts of war or terrorism, changes in
consumer demand and product mix, unusual weather that may impact sales, the
impact of inflation, merchandise supply and pricing constraints, success of
merchandising and marketing programs, 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, adverse
impacts associated with legal proceedings and claims, changes in shrinkage,
changes in health care and other insurance costs, changes in the Company's
ability to attract and retain employees, changes in state or federal
legislation or regulations, including the effects of legislation and
regulations on wage levels and entitlement programs. Consequently, all of the
forward-looking statements made by the Company in this and other documents or
statements 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
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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