MATTHEWS, N.C., Dec. 2 /PRNewswire-FirstCall/ -- Family Dollar Stores,
Inc. (NYSE: FDO), a discount store chain operating 5,558 stores in 44 states,
reported sales for the four-week period ended November 27, 2004, of
approximately $457.9 million, or 13.7% above sales of $402.6 million for the
similar period in the prior fiscal year. Sales in existing stores for the
four-week period ended November 27, 2004, increased approximately 5.2% above
existing store sales for the similar period in the prior fiscal year,
including an increase of approximately 7.1% in sales of hardlines and a
decrease of approximately 1.2% in sales of softlines. While it is difficult
to quantify the impact of the circular, of the approximate 5.2% increase in
sales in existing stores, the Company attributes approximately 2% to 3% to the
distribution of an advertising circular in the first week of November.
For the thirteen-week period ended November 27, 2004, sales were
approximately $1,380.2 million, or 10.9% above sales of $1,244.7 million for
the similar period in the prior fiscal year. Sales in existing stores for the
thirteen-week period ended November 27, 2004, increased approximately 2.5%
above existing store sales for the similar period in the prior fiscal year,
including an increase of approximately 4.5% in sales of hardlines and a
decrease of approximately 4.6% in sales of softlines.
During the thirteen-week period ended November 27, 2004, sales of more
discretionary merchandise, such as hanging apparel and home decor, 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 period. The substantial additional sales of sharply priced merchandise
in the advertising circular in the first week of November also will adversely
impact the gross profit margin. 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. The Company currently expects that net income per diluted share of
Common Stock will be in the range of $.32 to $.33 in the thirteen-week period
ended November 27, 2004, compared to $.37 in the similar period in the prior
fiscal year.
As of November 27, 2004, there were 5,555 stores in operation, including
98 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 January 1, 2005, to increase in the 2% to 3% range.
Family Dollar will host a conference call on Friday, December 17, 2004, at
10:00 A.M. ET to discuss the financial results for the first quarter ended
November 27, 2004. If you wish to listen, please call 888-791-5525 for
domestic USA calls and 773-756-4619 for international calls at least 10
minutes before the call is scheduled to begin. A replay of the call will be
available from about 1:00 P.M. ET, December 17, 2004, through December 24,
2004, by calling 866-380-6748 for domestic USA calls and 203-369-0349 for
international calls.
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, December 17, 2004.
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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