For the third quarter ended May 31, Family Dollar posted net income of $81.1 million, or 71 cents per diluted share, versus $120.9 million, or $1.05 per diluted share, in the year-ago period. The company reported that adjusted net income per diluted share was 85 cents compared to $1.05 in the prior-year quarter.
A Zacks Consensus Estimate of Wall Street analysts called for adjust income per diluted share of 90 cents.
Comparable store sales decreased 1.8% versus last year’s quarter, Family Dollar stated, while net sales increased 3.3% to $2.66 billion. Comps slipped due to fewer customer transactions, a result that was partially offset by an increase in the average customer transaction value, the company added. Third quarter sales were strongest in the Consumables category, driven primarily by strong growth in refrigerated/frozen food and tobacco, it related.
Adjusted fiscal third quarter income excludes a 14 cents per share negative impact related to the company’s restructuring efforts, which are part of a previously announced strategic initiative to strengthen Family Dollar’s value proposition, increase operational efficiencies and improve financial performance, the retailer pointed out.
“We are executing our previously announced restructuring initiatives to improve our performance,” said Howard Levine , Family Dollar chairman and CEO. “Our recent investment to permanently lower prices is resonating with customers. We are seeing savings from our workforce optimization efforts. And we are on track to close approximately 370 underperforming stores by the end of the fiscal year. We remain confident that these steps will position the company to improve our financial performance and deliver higher long-term shareholder returns.”
In the third quarter, Family Dollar opened 111 new stores, closed three, and renovated, relocated or expanded 266 stores. The company operates about 8,200 stores in 46 states.