Family Dollar Profit Misses Estimates, Sales In Line

(RTTNews) - Discount retailer Family Dollar Stores Inc (FDO), which is being acquired by rival Dollar Tree Inc. (DLTR), on Wednesday reported first-quarter net earnings of $79.9 million or $0.70 per share compared with $81.1 million or $0.71 per share last year.

Excluding items, adjusted earnings for the quarter were $0.74 per share compared with $0.85 per share a year ago.

Revenues for the quarter increased 2.6% to $2.73 billion from $2.66 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.82 per share on revenues of $2.73 billion for the quarter. Analysts' estimates typically exclude special items.

Comparable store sales for the quarter increased 0.7% as a result of an increase in the number of customer transactions, partly offset by a drop in the average customer transaction value.

Gross margin for the quarter improved to 34.6% from 34.3% a year ago, and operating margin rose to 4.6% from 4.5%.

Meanwhile, income tax expense for the quarter was higher at $48.1 million compared with $40.2 million last year, hurting profits.