US discount retailer Family Dollar Stores today (8 April) upped its annual profit forecast for the second time this year as shoppers continued to flock to its stores.
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The company, which saw second-quarter net income jump by a third in the three months to the end of February, raised its outlook for earnings per share and for sales for fiscal 2009.
In January, Family Dollar predicted a 4-6% rise in sales and 2-4% increase in comparable-store sales for the year to 29 August. The retailer also set an earnings per share forecast of $1.63-1.81 for the year.
Today, Family Dollar said it now expects net sales to rise by 5-7% during the fiscal year, with comparable-store sales up 3-5%. The retailer also laid out a forecast of annual earnings per share of $1.90-2.00.
Chairman and CEO Howard Levine said Family Dollar’s “value and convenience” had attracted rising traffic levels.
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By GlobalDataLevine insisted, however, that Family Dollar had made “significant investments” to “enhance the shopping experience” in its stores.
Levine said: “We have made significant progress to improve our relevancy to the customer, and we will continue to invest to make Family Dollar a more compelling place to shop, work and invest.”
Net income was up 32.9% to $84.1m in the three months to 28 February. Sales rose 8.7% to $1.99bn. Comparable-store sales rose 6.4%.
