MATTHEWS, N.C., May 6 /PRNewswire-FirstCall/ -- Family Dollar Stores, Inc.
(NYSE: FDO), a discount store chain operating 5,237 stores in 43 states,
reported sales for the four week period ended May 1, 2004, of approximately
$398.3 million or 8.8% above sales of $366.1 million for the similar period in
the prior fiscal year. Sales in existing stores for the four week period
ended May 1, 2004, decreased approximately 0.4% below existing store sales for
the similar period in the prior fiscal year, including an increase of
approximately 1.0% in sales of hardlines and a decrease of approximately 4.8%
in sales of softlines.
Sales of basic consumable merchandise, such as household chemicals, paper
products and food, continue to be satisfactory. However, sales of seasonal
goods, such as hanging apparel and lawn and garden items, and other more
discretionary merchandise, continue to be below the Company's plan. The
Company's low and low-middle income customer base traditionally buys seasonal
merchandise close to the time of need. The absence of an extended period of
warmer weather in many areas of the country has adversely impacted the sale of
seasonal goods. The difficult economy, including rising energy prices, for
the Company's customer base also has limited spending on seasonal and other
more discretionary merchandise.
For the nine week period ended May 1, 2004, sales were approximately
$898.7 million, or 10.6% above sales of $812.8 million for the similar period
in the prior fiscal year. Sales in existing stores for the nine week period
ended May 1, 2004, increased approximately 1.1% above existing store sales for
the similar period in the prior fiscal year, including an increase of
approximately 2.9% in sales of hardlines and a decrease of approximately
4.8% in sales of softlines.
For the thirty-five week period ended May 1, 2004, sales were
approximately $3,546.2 million or 11.6% above sales of $3,177.6 million for
the similar period in the prior fiscal year. Sales in existing stores for
comparable thirty-five week periods are estimated to have increased
approximately 2.1%, including an increase of approximately 3.1% in sales
of hardlines and a decrease of approximately 1.3% in sales of softlines.
As previously announced the Company's plan is for sales in existing stores
in the four week period ending May 29, 2004, to increase in the 3% to 5%
range. The calendar for sales is more favorable in the May period than the
April period when sales were affected by the Easter holiday being earlier in
the month this year. The Company also expects that warmer weather in May will
contribute to improved sales in seasonal goods.
The Company also revised its earnings guidance for the third quarter
ending May 29, 2004, and the fourth quarter ending August 28, 2004.
Previously, the Company's plan had been for net income per diluted share of
Common Stock in each quarter to increase approximately 14% to 16%. This
guidance was based on the assumption that sales in existing stores in each
quarter would increase in the 3% to 5% range. The Company now expects sales
in existing stores in the third quarter ending May 29, 2004, to increase
approximately 2%, assuming an increase of 3% to 5% in the May reporting
period. With this level of existing store sales, and with the below plan
sales in the quarter being primarily in higher gross profit margin seasonal
departments, the Company's current plan is for net income per diluted share of
Common Stock in the third quarter ending May 29, 2004, to increase
approximately 5% to 10%.
For the fourth quarter ending August 28, 2004, the Company's current plan
also is for net income per diluted share of Common Stock to increase
approximately 8% to 12%. This guidance is based on the assumption that sales
in existing stores in the fourth quarter will increase in the 2% to 4% range.
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 and potential problems associated
with the implementation of new systems and technology, including supply chain
systems and electronic commerce, changes in energy prices and their impact on
consumer spending and the Company's costs, legal proceedings and claims,
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
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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