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FAMILY DOLLAR REPORTS RECORD SALES AND EARNINGS FOR FIRST QUARTER ENDED NOV. 30, 1993; DECEMBER SALES ALSO AT RECORD LEVELS

 MATTHEWS, N.C., Jan. 6 /PRNewswire/ -- Family Dollar Stores, Inc. (NYSE: FDO), a discount store chain operating 2,091 stores in a 33-state area ranging as far northwest as Minnesota, northeast to New Hampshire, southeast to Florida and southwest to Texas, reported the highest first quarter sales and earnings in the Company's history. For the first quarter ended Nov. 30, 1993, sales were $335,091,748 or 10.0 percent above sales of $304,607,987 for the first quarter of the prior fiscal year. Income before the cumulative effect of an accounting change was $14,949,719 or 8.4 percent above net income of $13,786,661 for the comparable quarter last year, and earnings per share increased to $.27 from $.25. After the cumulative effect of a change in accounting for income taxes of approximately $1,139,000, or $.02 per share, resulting from the adoption of Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes," net income was $16,088,872 and earnings per share increased to $.29 from $.25.
 The Company also announced that sales in December 1993 established a new one month sales record for Family Dollar. In that month, sales are estimated to have increased to approximately $216,900,000 or 12.5 percent above the then record one month sales of $192,793,595 in December 1992.
 Leon Levine, Chairman of the Company, attributed the record sales results for the first quarter ended Nov. 30, 1993, and December 1993, to sales recorded in new stores opened in the Company's store expansion program and to increased sales in existing stores. Sales in existing stores increased approximately .7 percent in the first quarter ended Nov. 30, 1993, and are estimated to have increased approximately 2.3 percent in December 1993. During the first quarter ended Nov. 30, 1993, and in December 1993, 46 and 21 new stores were opened, respectively, compared to 28 and 10 new stores opened in the first quarter ended Nov. 30, 1992, and in December 1992, respectively. Five stores were closed during the first quarter ended Nov. 30, 1993, and six stores closed in December 1993, compared to two store closings in the first quarter ended Nov. 30, 1992, and ten store closings in December 1992. As previously announced, the Company plans to open approximately 190 stores and close approximately 25 stores during the current fiscal year.
 The Company faced difficult sales comparisons in the first quarter ended Nov. 30, 1993, and in December 1993, as sales in existing stores in the first quarter ended Nov. 30, 1992, and in December 1992, increased 7.3 percent and 15.4 percent, respectively. Although sales in existing stores in the first quarter ended Nov. 30, 1993, increased only .7 percent, the Company achieved an 8.4 percent increase in income before the cumulative effect of an accounting change by tightly controlling operating expenses.
 In an increasingly competitive retail sales environment, in December 1993 the Company implemented a program of price reductions on selected items of merchandise in approximately 400 stores in the most competitive markets. This program was not advertised in December, other than through the use of in-store signs, but beginning in mid-January advertising circulars highlighting the program will be distributed in these markets.
 Comparable operating results (unaudited) are as follows:
 For the First Quarter Ended
 Nov. 30,
 1993 1992
 Net Sales $335,091,748 $304,607,987
 Income Before Income Taxes
 And Cumulative Effect Of
 Accounting Change 24,288,719 22,016,661
 Income Taxes 9,339,000 8,230,000
 Income Before Cumulative Effect
 Of Accounting Change 14,949,719 13,786,661
 Cumulative Effect Of Change In
 Accounting For Income Taxes 1,139,153 --
 Net Income 16,088,872 13,786,661
 Earnings Per Share:
 Income Before Cumulative Effect
 Of Accounting Change $.27 $.25
 Cumulative Effect Of Change
 In Accounting For Income Taxes $.02 --
 Net Income $.29 $.25
 Dividends Declared Per Common Share $.075 $.065
 Weighted Average Number Of Shares 56,370,147 56,106,053
 -0- 1/6/94
 /CONTACT: George R. Mahoney Jr., executive vice president of Family Dollar Stores, 704-847-6961/
 (FDO)


CO: Family Dollar Stores, Inc. ST: North Carolina IN: REA SU: ERN

MM -- CH003 -- 9670 01/06/94 09:11 EST
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Publication:PR Newswire
Date:Jan 6, 1994
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