US discount retailer Family Dollar Stores has recorded a drop in third-quarter earnings but said sales and profits came in at the upper end of its guidance.
In the three month period, net income dropped to US$120.9m from earnings of $124.5m last year. CEO Howard Levine said sales of consumable items such as food and beauty products performed “strongly” during the quarter, but sales of discretionary items continued to come under pressure.
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Operating profit was down 1.15% to $532.4m.
Sales, however, increased 9% to $2.57bn, while comparable sales were up 2.9%. The increase was a result of an increase in the average customer transaction value and higher customer traffic.
The retailer narrowed its full-year earnings forecast, raising the low end of the range and cutting the high end of the range. It now expects diluted earnings per share of between $3.77 and $3.82, compared to $3.58 in fiscal 2012.
