US discount retailer Family Dollar Stores hopes to grow its market share following “record” first-quarter sales and profits.
In its results for the quarter ending 26 November, net income for the quarter increased 8.1% to US$80.4m, while operating profit rose 11% to $135m. Net sales hit $2.1bn, up from $2bn last year.
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Comparable-store sales in the first quarter increased 4.1%, the result of increased customer traffic and greater spend on consumables, according to the retailer. It added that it expects these trends to continue into the second quarter.
Analysts from William Blair, however, expressed concern over the 1% drop in gross profit as a percentage of net sales and downgraded its fiscal 2012 EPS estimate by $0.10.
During the quarter Family Dollar opened 101 stores, nearly 20% more than in the first quarter last year, and in November launched four stores in California, an “important” new market.
Family Dollar chairman and CEO Howard Levine said: “The environment continues to be challenging for our customers, and our experienced team remains focused on executing our long-term strategy. We have tremendous opportunity to expand our market share further and improve our store productivity.”
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By GlobalDataThe retailer also said it expects net sales to grow between 8% and 10% over fiscal 2012.
