US retailer Family Dollar has said that its second-quarter profits increased 33% on improved sales and margins.
The company said today (7 April) that earnings rose to US$112.2m in the three months to 27 February.
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Sales rose 4.9% to $2.09bn, while ID sales were up 3.6% on higher traffic and increased basket spend.
Gross margin jumped to 35.4% from 33.7% on stronger prices, fewer markdowns and lower freight and shrinkage costs.
The company also raised its full-year earnings outlook to a range of $2.48-2.58 a share from its January projection of $2.15-2.35 a share.
“These strong results reflect our efforts to provide our customers with more value, more convenience and a better shopping experience,” said Howard Levine, chairman and CEO.
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By GlobalData“As we increase our focus on accelerating revenue growth, I am confident that our continued efforts to broaden the appeal of our assortment, strengthen our customer communications and improve the in-store shopping experience will result in expanded market share and strong financial returns.”
For the full press release click here and click here for coverage of Family Dollar’s conference call with analysts.
