US discount retailer Family Dollar Stores announced a management shake-up yesterday (9 January) after it unveiled a drop in first-quarter earnings and lowered its guidance for the year.
In the three months to the end of November, net profit fell to US$78m, down from $80.3m in the comparable period of last year. Operating profit fell to $120.3m, down from $126.9m in fiscal 2013.
The US dollar store said revenues came under pressure as the promotional environment “intensified”. The company witnessed a decline in customer transactions in the period and like-for-like sales dropped 2.8%. Total sales increased 3.2% to $2.5bn but the gain failed to hit expectations.
The company announced COO Michael Bloom has left to “pursue other interests” and a search for his replacement is being conducted. Family Dollar has also promoted Jason Reiser, SVP of merchandising, to the position of chief merchandising officer.
Family Dollar lowered its earnings expectations for the full year. The company said that it now expects earnings to be down on last year and forecast EPS of $3.25 to $3.55, compared with $3.83 for 2013.