Today, Family Dollar Stores, Inc. reported that total fourth quarter net income was $80.9 million, or 69 cents per diluted share, compared with $79.8 million, or 66 cents per diluted share, in last year’s period. Excluding a litigation charge, net income for the quarter would have increased 10.3% year over year to $88.1 million.
Earnings met a Thomson Reuter’s average analyst estimate.
Net sales increased 10.8% versus the year-prior period to $2.36 billion as comparable store sales gained 5.4%, according to the company. The comp advance resulted from increased customer traffic and average customer transaction value, Family Dollar related.
Fiscal 2012 net income reached $422.2 million, or $3.58 per diluted share, versus $388.4 million, or $3.12 per diluted share, in the year earlier. Excluding the litigation charge, net income in fiscal 2012 would have advanced 10.5% to $429.4 million, Family Dollar stated.
“Fiscal 2012 was a year of great progress for Family Dollar,” said Howard Levine, the company’s chairman and CEO, in reporting financial results. “We expanded our merchandise assortment to increase our relevancy to our customers. We continued to improve the shoppability of our stores, and we repositioned our leadership team to better support our growth.”
Levine pointed to a string of accomplishments for the year in which Family Dollar:
- opened 475 new stores, including 41 stores in California.
- renovated, relocated or expanded 854 stores.
- expanded assortment in key consumable businesses including food and health and beauty aids.
- introduced new categories such as tobacco, magazines and gift cards.
- expanded coolers in 1,375 stores.
- enhanced customer communication through improvements in marketing capabilities.
- opened its 10th distribution center and began construction of its 11th.
- delivered another year of double-digit earnings per share growth.
- increased the annual dividend paid to shareholders by 16.4%.
- increased return on shareholders’ equity and return on invested capital.
In a presentation on financial results, Family Dollar noted that it planned to open 500 new stores and renovate, relocate or expand 850 stores locations in fiscal 2013.