Family Dollar's consumables sales pressure profit
Courtney Mueller -- Casual Living, January 3, 2013
Matthews, N.C. - Sales and comps were up nicely during Family Dollar's first quarter, but the emphasis on low-margin consumables flattened profit.
Net income for the quarter ended Nov. 24 was $80.35 million, or 69 cents per share, compared to net income of $80.25million, or 68 cents per share in the year-ago period.
Sales climbed 12.7% to $2.42 billion compared, with sales up 18.5% in consumables, driven primarily by strong growth in tobacco, food and health and beauty aids.
Comps rose 6.6% on stronger traffic and a higher average customer transaction.
During the quarter, Family Dollar opened 125 new stores, closed one store, and renovated, relocated or expanded 169 stores.