Family Dollar recorded an increase in first-half profits

Family Dollar recorded an increase in first-half profits

US discount retailer Family Dollar Stores has booked an increase in first-half profits and upped its full-year guidance.

For the 12 months to 25 February, the company earned US$216.8m, a 9.8% increase on the prior year, it reported today (28 March). Operating profits climbed 10.6% to $356m.

Sales in the period amounted to $4.61bn, an 8.2% increase on the previous year. The figure was boosted by increased customer traffic, and a slight increase in the average customer transaction value. Sales were strongest in the the firm's consumables, seasonal and electronics categories.

In the second quarter, net profits climbed 10.7% to $136.5m, while operating profits grew 10.3% to $221.1m.

Sales increased 8.6% to $2.46bn from a year earlier, while comparable store sales increased 4.5%.

"I'm very pleased to report that we delivered our 16th consecutive quarter of double-digit earnings per share growth," said chairman and CEO Howard Levine. "Our investments to improve the shopping experience and broaden our customer appeal are gaining momentum and continue to drive higher returns for our shareholders."

For the full year, the company said it expects to report earnings of $3.55 to $3.75 per share. It previously forecast $3.50 to $3.75.