Today, for the third quarter of fiscal 2013 ended June 1, Family Dollar Stores, Inc. reported that net income was $120.9 million, or $1.05 per diluted share, compared to net income of $124.5 million, or $1.06 per diluted share, for the 2012 period. According to the company, comparable store sales for the quarter increased 2.9%.
A published consensus financial analyst estimate from Thomson Reuters called for diluted earnings per share of $1.03.
Family Dollar stated that the comp increase resulted from a gain in the average customer transaction value and higher customer traffic. Sales were strongest in the consumables category, which increased 14.8% during the quarter, driven primarily by strong growth in food, health and beauty aids, and tobacco.
Net sales increased 9% to $2.57 billion. Higher SG&A expenses, though lower as a percentage of sales, cut into operating profit, which came in at $188.4 million in the third quarter versus $193.3 in the year-earlier period.
“This morning we reported sales and earnings results for the third quarter that were at the upper-end of our guidance,” said Howard Levine, Family Dollar chairman and CEO. “Our consumables sales remained strong, and we continued to gain market share. However, our discretionary sales remained challenged as our customers have been forced to make spending choices between basic needs and wants. Consistent with market trends, we expect that our customers will continue to face financial headwinds. We are adapting accordingly, and we are focused on stabilizing gross margin, controlling expenses, improving inventory productivity and driving greater operational efficiencies. I am confident that we remain well positioned for long-term profitable growth.”