Family Dollar Stores Incorporated released their fourth-quarter earnings statement. In that earnings statement they show a 1.4% increase in sales volume. The volume of sales was primarily in their consumables inventory. This increase in sales by 16% helped to offset sluggish sales which were down by 6.7% in their apparel and accessories. Adding to the sales mix were electronic sales that increased by 4.8% and a decrease in home items by 1.4%.
In addition to the release of their quarterly earnings statement, officials at Family Dollar stores released their earnings forecast for 2013. In that forecasted earnings statement they are predicting a increase in their value of stock from $4.10 per share to $4.40 a share. Additionally, the forecast for sales is expected to increase to 6%. This level of sales is 2% higher than what was originally forecast.
Outside analysts were forecasting the value of Family Dollar Stores to be at an increased level of $4.22 per share. Also analysts were forecasting that the growth per share of stock for the quarter would be at a level of $.77. This was in keeping with the forecasts issued by Family Dollar Store’s management. Those forecasts range anywhere from $.69-$.78 per share.
Family Dollar Stores is a discount store that provides the basic necessities for households. These items are sold at a significantly lower cost than one would pay at a typical retailer. The increase in sales for Family Dollar Stores is a reflection of the current recession that families are still experiencing along with their wanting to buy basic commodities and a cheaper price.
In order to continue this increase in sales, the Family Dollar Store is now selling tobacco products and are changing their business model by making the store into more of a one stop shopping experience for their customers. Rounding out this strategy is the offering of major brands, at a discounted price, to their customers. Specifically one of those brands is Pepsi-Cola.
Reflected in the quarterly financial report were the earnings of Family Dollar Store at a profit level of $80.9 million. This profit reflects a $.69 earnings per share of stock. This $80.9 million figure is an increase over the same time frame last year which in which Family Dollar reported a $79.8 million profit or at a level of added value of $.66 a share.
Per share costs were reduced from $.75 to $.69. This was due to expenses associated with litigation.
Another profit measurement report distributed showed a comparison of same-store sales. This measurement showed an increase of 5.4%. This percentage increase fell within the company’s expectation of a 5% to 7% increase in growth.
Family Stores Incorporated realized an increase in the value of stock by 14%.
