Discount retailer Family Dollar Stores Inc. (FDO) reported that its second-quarter net income rose to $140.1 million or $1.21 per share from $136.4 million or $1.15 per share in the second quarter of fiscal 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $1.23 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the second quarter increased 17.7% to $2.89 billion from $2.46 billion in the second quarter of fiscal 2012. Twenty two analysts had consensus revenue estimate of $2.89 billion for the quarter.
Comparable store sales for the 14-week period ended March 2, 2013, increased 2.9% when compared with sales for the similar 14-week period last year.
Comparable store sales for the quarter increased as a result of higher customer traffic and an increase in the average customer transaction value.
The company expects that sales in more discretionary categories will continue to be pressured in the second half of fiscal 2013 and that comparable store sales in the second half of the year will increase between 2% and 4%.
The company expects that comparable store sales in the third quarter will be in the lower end of this range and that comparable store sales in the fourth quarter will be in the upper end of this range.
The company anticipates that many of the sales and margin trends that occurred in the first half of the year will continue in the third quarter and that earnings per share will be between $0.98 and $1.08 per share compared with $1.06 per share in the third quarter of fiscal 2012. The company expects that operating margin will increase and that earnings per diluted share will be between $0.85 and $0.95 per share compared with $0.69 per share in the fourth quarter of fiscal 2012.
Analysts expect the company to report earnings of $1.18 per share on revenues of $2.63 billion for the third-quarter.
The company now expects that earnings per share in fiscal 2013 will be between $3.73 and $3.93 compared to prior estimate of $3.95 and $4.20 per share. The outlook assumes comparable store sales growth of 3% and 4%. Analysts expect the company to report earnings of $3.98 per share for fiscal 2013.
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