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MATTHEWS, N.C. — Family Dollar Stores Inc. reported fiscal second quarter earnings Wednesday that beat analysts’ expectations but were weaker than the same quarter last year.
Family Dollar Stores Inc. reported fiscal second quarter earnings Wednesday that beat analysts’ expectations but were weaker than the same quarter last year.
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Overall sales rose 3% to $2.8 billion in the quarter ended February 28.
Sales at stores open at least a year increased by 0.5% as a higher number of transactions helped offset a lower average transaction price. Sales of consumables increased 4.6%, while sales for discretionary products declined 1% in the period.
"While our trends in late-February were adversely impacted by severe winter weather, our sales trends in March rebounded nicely, reflecting both improved traffic trends and the benefit of an earlier Easter," said Howard Levine, Family Dollar’s chairman and chief executive officer. "We are excited about the pending merger with Dollar Tree, and our teams are working to ensure a successful integration."
Family Dollar cited the pending merger in declining to hold a conference call to discuss second quarter results with Wall Street analysts and for not providing earnings guidance for fiscal 2015.
Family Dollar shareholders approved the merger in January.
Virginia-based Dollar Tree said on Tuesday that it expects to be able to complete its purchase of Family Dollar in May, and that it will have to sell about 340 Family Dollar locations to close the deal.
Dollar Tree said in a securities filing that the Federal Trade Commission has "substantially completed" its review of the merger and has identified 340 stores that it wants the company to divest in order to preserve competition. Dollar Tree said all or nearly all of those stores will be Family Dollar locations, and the stores have about $47.4 million in operating income.
Dollar Tree also said it is in talks with potential buyers of those stores.
The merger of Dollar Tree and Family Dollar will create a nation’s biggest discount retailer, with more than 13,000 stores.
