FDO: For our Retail Players. . . .
Family Dollar Reports Record Third Quarter And First
Three Quarters Sales and Earnings; And Announces
Plans to Open 475 to 500 New Stores in Fiscal 2001
And First Three Quarters Sales and Earnings; And
Announces Plans to Open 475 to 500 New Stores in Fiscal 2001
MATTHEWS, N.C., June 22 /PRNewswire/ -- Family Dollar Stores, Inc.
(NYSE: FDO), a discount store chain operating 3,578 stores in 39 states,
reported the highest sales and net income for any third quarter and first
three quarters in the Company's history. For the third quarter ended
May 27, 2000, sales were $770,775,831, or 13.5% above sales of $678,857,739
for the third quarter ended May 29, 1999. Net income was $50,130,922, or
20.0% above net income of $41,767,386 for the third quarter last year, and net
income per share increased to $.29 from $.24.
For the three quarters ended May 27, 2000, sales were $2,342,796,717, or
13.8% above sales of $2,059,090,433 for the three quarters ended May 29, 1999.
Net income for the three quarters ended May 27, 2000, was $141,695,055, or
25.3% above net income of $113,048,872 for the three quarters ended
May 29, 1999, and net income per share increased to $.82 from $.65.
The sales gains are attributable to increased sales in existing stores and
to sales from new stores opened as part of the Company's store expansion
program. Sales in existing stores increased approximately 5.4% in the third
quarter ended May 27, 2000, and 5.3% in the three quarters ended May 27, 2000,
above the comparable periods last year. One hundred new stores opened and
5 stores closed during the third quarter this year, compared to the opening of
94 stores and the closing of 9 stores during the third quarter last year.
The third quarter was the sixteenth consecutive quarter that sales
increased in excess of 13% and net income increased at least 20%. In the
third quarter the Company continued to reallocate space in its stores.
Increased space is being given to hardlines, including name brand, basic
consumable merchandise such as food, household chemicals and paper products,
as well as seasonal and giftware categories. Space allocated to softlines,
including apparel, is being reduced. With more space devoted to hardlines, in
the third quarter in existing stores hardlines sales increased 9.4% and
softlines sales decreased 4.0%. As a percent to sales the gross profit margin
increased from 35.1% in the third quarter last year to 35.3% in the third
quarter this year. Increased expense leverage also contributed to the
earnings growth, as expenses as a percent to sales decreased from 25.4% in the
third quarter last year to 25.1% in the third quarter this year.
Howard R. Levine, President and Chief Executive Officer of the Company,
stated that: "The current space reallocation program responds to customer
demand for more basic consumables, as well as an expanded selection of
giftwear and seasonal items. Additional consumables sales generated by this
program will be at a lower gross profit margin percentage but will provide
opportunities for further leveraging of our expenses. The program is expected
to be complete in all stores by October."
The Company also announced that it currently plans to open 475 to 500 new
stores and close approximately 50 stores in the fiscal year beginning
August 27, 2000. This plan represents a substantial increase in store
expansion above the pace of expansion in the current fiscal year when the
Company expects to open approximately 400 new stores and close approximately
50 stores. To serve the growing number of stores, a 907,000 square foot
distribution facility in Rowan County, Kentucky, has been completed and began
shipping merchandise to stores this month.
Certain statements contained in this press release which are not
historical facts are forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements address activities or events which the
Company expects will or may occur in the future. A number of important
factors could cause actual results to differ materially from those expressed
in any forward-looking statements. Such factors include, but are not limited
to, competitive factors and pricing pressures, general economic conditions,
changes in consumer demand, inflation, merchandise supply constraints, general
transportation delays or interruptions, dependence on imports, changes in
currency exchange rates, tariffs, quotas, and freight rates, availability of
real estate, costs and delays associated with building, opening and operating
new distribution facilities, and the effects of legislation on wage levels and
entitlement programs. Consequently, all of the forward-looking statements
made are qualified by these and other factors, risks and uncertainties. The
Company does not undertake to publicly update or revise its forward-looking
statements even if experience or future changes make it clear that projected
results expressed or implied in such statements will not be realized.
Comparable operating results (unaudited) are as follows:
For the Third Quarter Ended
May 27, 2000 May 29, 1999
Net Sales $ 770,775,831 $ 678,857,739
Cost of Sales 498,341,999 440,632,092
Gross Margin 272,433,832 238,225,647
Selling, General and
Administrative Expenses 193,437,710 172,458,261
Income Before Income Taxes 78,996,122 65,767,386
Income Taxes 28,865,200 24,000,000
Net Income 50,130,922 41,767,386
Net Income Per Common Share-Basic $.29 $.24
Average Shares-Basic 171,133,686 172,651,802
Net Income Per Common Share-Diluted $.29 $.24
Average Shares-Diluted 172,110,443 174,041,232
Dividends Declared Per Common Share $.055 $.05
For the Three Quarters Ended
May 27, 2000 May 29, 1999
Net Sales $2,342,796,717 $2,059,090,433
Cost of Sales 1,538,887,161 1,362,652,594
Gross Margin 803,909,556 696,437,839
Selling, General and
Administrative Expenses 580,749,301 516,328,967
Income Before Income Taxes 223,160,255 180,108,872
Income Taxes 81,465,200 67,060,000
Net Income 141,695,055 113,048,872
Net Income Per Common Share-Basic $.82 $.65
Average Shares-Basic 171,873,775 172,437,432
Net Income Per Common Share-Diluted $.82 $.65
Average Shares-Diluted 172,878,087 173,759,059
Dividends Declared Per Common Share $.16 $.145
SOURCE Family Dollar Stores, Inc.
06/22/2000
/CONTACT: George R. Mahoney, Jr., Executive Vice President of Family
Dollar Stores, Inc., 704-814-3252/
/Photo: NewsCom: newscom.com
PRN Photo Desk, 888-776-6555 or 201-369-3467/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 300875/
/Web site: familydollar.com /
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