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MATTHEWS, N.C. — Family Dollar Stores Inc. reported that its net income fell to $41.4 million, or 36 cents per share, in the first quarter ended November 29, down from $78 million, or 68 cents per share, in the prior-year period.
Family Dollar Stores Inc. reported that its net income fell to $41.4 million, or 36 cents per share, in the first quarter ended November 29, down from $78 million, or 68 cents per share, in the prior-year period.
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Comparable-store sales declined 0.4% in the first quarter, while overall sales increased 2.3% to $2.56 billion.
"As expected, the first quarter of fiscal 2015 was very challenging, as we continued our transition from a very promotional merchandising strategy to a more everyday-low price strategy," said chairman and chief executive officer Howard Levine on Thursday. "During the quarter, gross margin continued to be pressured by the impact of pricing investments, as well as strong growth of lower-margin consumable categories, including food and tobacco. Our team did a good job of controlling expenses; however, ongoing top-line challenges and continued margin pressures impacted our net profitability."
Levine added that Family Dollar is focused on driving more profitable sales growth in the remainder of the fiscal year, and he said that the company was off to a good start in the second quarter.
"Comparable-store sales in December increased 1.2%," he said, "with fewer in-season promotional markdowns than last year and growth in customer traffic."
