MATTHEWS, N.C., Nov. 4 /PRNewswire-FirstCall/ -- Family Dollar Stores,
Inc. (NYSE: FDO), a discount store chain operating 5,502 stores in 44 states,
reported sales for the four-week period ended October 30, 2004, of
approximately $411.7 million, or 8.8% above sales of $378.4 million for the
similar period in the prior fiscal year. Sales in existing stores for the
four-week period ended October 30, 2004, increased approximately 0.9% above
existing store sales for the similar period in the prior fiscal year,
including an increase of approximately 2.1% in sales of hardlines and a
decrease of approximately 3.1% in sales of softlines.
For the nine-week period ended October 30, 2004, sales were approximately
$922.3 million, or 9.5% above sales of $842.1 million for the similar period
in the prior fiscal year. Sales in existing stores for the nine-week period
ended October 30, 2004, increased approximately 1.2% above existing store
sales for the similar period in the prior fiscal year, including an increase
of approximately 3.4% in sales of hardlines and a decrease of approximately
6.2% in sales of softlines.
During the nine-week period ended October 30, 2004, sales of more
discretionary merchandise, such as hanging apparel and domestics, were below
the Company's plan. The continuing shift in the merchandise mix to more lower
margin consumables and less higher margin discretionary goods and the
continuing impact of shrinkage will adversely impact the gross profit margin
in the first quarter ending November 27, 2004. In the first quarter, the
Company also is incurring expenses as planned in connection with the urban
initiative and other previously discussed initiatives which are expected to
positively impact sales later in the fiscal year.
As of October 30, 2004, there were 5,496 stores in operation, including 19
stores that were opened during the four-week period ended October 30, 2004.
The Company's current plan is for sales in existing stores in the four-
week period ending November 27, 2004, to increase in the 3% to 5% range.
Sales in this period are expected to be aided by the distribution of an
advertising circular in the first week of November.
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
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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