Discount retail chain Family Dollar Inc. (FDO) is slated to release its fourth-quarter earnings results before the market opens today. The Charlotte, North Carolina-based company, which has been benefiting from the recession as penny-pinching consumers flock to discount stores for necessities, currently expects earnings for the fourth quarter to be between $0.39 and $0.43 per share.
On average, 22 analysts surveyed by Thomson Reuters expect earnings of $0.41 per share for the quarter, with estimates ranging between $0.39 and $0.44 per share. Analysts' estimates typically exclude special items. The company recorded net income of $53.2 million or $0.38 per share in the year-earlier quarter.
In September, Family Dollar reported that fourth-quarter comparable store sales increased 1% and net sales grew 2.6% to about $1.811 billion from $1.766 billion a year ago, while analysts expected revenues of $1.81 billion. As per its initial fourth-quarter forecast, the company had projected net sales growth of 4% - 6% and comparable store sales increase of 2% - 4%.
While announcing the quarterly sales results, Howard Levine, Family Dollar Chairman and Chief Executive Officer, stated, "As expected, our fourth quarter sales results were impacted as we anniversaried the effect of last year's stimulus package. In addition, this quarter we continued our aggressive pace of investments, and re-aligned space in approximately half our chain. Although the repositioning of categories to create better merchandise adjacencies and expand our selection of consumables resulted in some temporary disruption, customers are responding well to the improved shopping experience. We are pleased with the progress we have made and believe that these changes position us well for continued growth in fiscal 2010."
In the preceding third quarter, Family Dollar had posted a rise in net income to $87.7 million or $0.62 per share, propelled by consumer traffic growth and strong consumables category performance. Quarterly net sales advanced to $1.84 billion from the previous year's $1.70 billion, with comparable store sales growth of 6.2%. The company's consumables category generated 12.6% growth in net sales that totaled $1.20 billion, and home products witnessed 3.4% rise in the net sales to $237.4 million. Family Dollar, a Fortune 500 company, reported fiscal 2009 net sales of $7.40 billion and comparable store sales growth of 4%, while analysts expected $7.41 billion. Earlier in July, the company forecast full-year earnings per share of $2.03 - $2.07, while analysts are looking for earnings of $2.05 per share for the year, with estimates ranging between $2.03 and $2.08 per share. In 2008, the company recorded net income of $233.1 million or $1.66 per share, on sales of $6.984 billion and comparable stores sales growth of 1.2%.
Among others in the field, Dollar Tree Inc. (DLTR) is slated to release its third-quarter earnings results on November 24. The Chesapeake, Virginia-based discount stores operator forecasts third-quarter earnings in the range of $0.58 to $0.64 per share, on sales of $1.19 billion - $2.13 billion, based on low-to-mid single digit positive comparable store sales. Analysts project earnings of $0.62 per share for the quarter on revenues of $1.22 billion.
Discount-store retailer Target Corp. (TGT) is slated to release its third-quarter earnings on November 17, with analysts projecting earnings of $0.44 per share, on revenues of $15.13 billion. The company had earlier noted that its sales remained challenging, however, it continued to experience favorable gross margin performance within categories and disciplined expense control in its retail segment, as well as modestly improving risk trends in its credit card segment.
Bentonville, Arkansas-based retail giant Wal-Mart Stores, Inc. (WMT) is slated to release its third-quarter results on November 12, with analysts projecting earnings of $0.81 per share, on revenues of $100.14 billion.
In a latest development, Family Dollar said it learned that the United States Supreme Court exercised its discretion not to review Janice Morgan, et al. v. Family Dollar Stores, Inc. The company said it was disappointed at the court's decision as it, along with the National Retail Federation and the U.S. Chamber of Commerce, believes that the issues presented in this case were important for the Court to consider. The company added that it anticipates that the Supreme Court's decision not to hear the case will not have a material impact on its financial condition, as it believes it has appropriately reserved for this contingency. Beginning with one store in 1959, Family Dollar now operates a chain of self-service retail discount stores for low to lower-middle income consumers in the US. The company offers consumables, home products, apparel and accessories, and seasonal and electronics. The company operated 6,655 stores in 44 states as of August 29, 2009.
FDO closed Tuesday's regular trading session at $28.48, up $1.54, on a volume of 8.6 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.