Family Dollar Stores Inc (FDO.N) on
Wednesday reported higher-than-expected quarterly profit as the
discount retailer kept a tight control on expenses and
inventory to navigate the tough environment.
Family Dollar, which prices most of its merchandise below
$10, also forecast fourth-quarter earnings that could surpass
current Wall Street estimates.
"Our intense focus on controlling expenses and mitigating
inventory risk has resulted in net income growth and an
improvement in inventory productivity, despite flat comparable
store sales," Howard Levine, chairman and chief executive
officer, said in a statement.
Net income rose to $64.67 million, or 46 cents per share,
in the third quarter that ended May 31, from $60.37 million, or
40 cents per share, a year earlier.
Analysts, on average, had been expecting it to earn 40
cents per share, according to Reuters Estimates.
Quarterly sales rose almost 3 percent to $1.702 billion.
Sales at stores open at least a year, known as comparable store
sales, increased 0.1 percent. The retailer said shoppers, on
average, spent more, helping to offset a decline in customer
traffic.
For the fourth quarter, it forecast earnings per share
between 30 cents and 35 cents, while analysts, on average,
currently expect 29 cents per share.
(Reporting by Nicole Maestri; Editing by Maureen Bavdek)
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