Family Dollar Likely To Post Improved Q4 Numbers

(RTTNews) - Discount retail chain Family Dollar Inc. (FDO: News ) is slated to release its fourth-quarter earnings results before the market opens today. The Charlotte, North Carolina-based company, which has been benefiting from the recession as penny-pinching consumers flock to discount stores for necessities, currently expects earnings for the fourth quarter to be between $0.39 and $0.43 per share.

On average, 22 analysts surveyed by Thomson Reuters expect earnings of $0.41 per share for the quarter, with estimates ranging between $0.39 and $0.44 per share. Analysts' estimates typically exclude special items. The company recorded net income of $53.2 million or $0.38 per share in the year-earlier quarter.

In September, Family Dollar reported that fourth-quarter comparable store sales increased 1% and net sales grew 2.6% to about $1.811 billion from $1.766 billion a year ago, while analysts expected revenues of $1.81 billion. As per its initial fourth-quarter forecast, the company had projected net sales growth of 4% - 6% and comparable store sales increase of 2% - 4%.

While announcing the quarterly sales results, Howard Levine, Family Dollar Chairman and Chief Executive Officer, stated, "As expected, our fourth quarter sales results were impacted as we anniversaried the effect of last year's stimulus package. In addition, this quarter we continued our aggressive pace of investments, and re-aligned space in approximately half our chain. Although the repositioning of categories to create better merchandise adjacencies and expand our selection of consumables resulted in some temporary disruption, customers are responding well to the improved shopping experience. We are pleased with the progress we have made and believe that these changes position us well for continued growth in fiscal 2010."