US discount chain Family Dollar Stores today (7 January) improved its annual sales and earnings forecasts after seeing its first-quarter earnings jump by over 14%.
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The retailer, which runs over 6,600 stores in the US, posted a 14.1% rise in net income to US$59.3m for the three months to 29 November.
Revenue rose 4.2% to $1.75bn as comparable-store sales increased 2.1%.
Chairman and CEO Howard Levine said Family Dollar was gaining customers as the economic downturn in the US hit consumer spending.
“As more families face financial challenges in this environment, they are relying on Family Dollar for more of their everyday needs,” Levine said.
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By GlobalData“As a result, we’re gaining market share and driving both increased customer traffic and transaction value.
Family Dollar said net sales rose 8% during December. Comparable-store sales were up 6%.
“Despite the economic pressures, customers clearly appreciated the great values we offered this holiday season,” Levine said.
Family Dollar’s performance during the last three months of 2008 led the company to predict that its annual earnings per share for the 12 months to 29 August would reach $1.63-1.81.
The retailer had previously forecast that its annual earnings per share would stand at between $1.58 and $1.78.
Family Dollar also forecast that net sales would grow by 4-6% during the fiscal year, against an earlier predicted growth of 3-5%.
