Family Dollar Stores, Inc. (FDO) Misses Q3 EPS by 3c; Guides Q4 EPS, Comps

Family Dollar Stores, Inc. (NYSE: FDO) reported Q3 EPS of $0.86, $0.03 worse than the analyst estimate of $0.89. Revenue for the quarter came in at $2.66 billion versus the consensus estimate of $2.62 billion.

Comparable store sales for the 13-week period decreased 1.8% as a result of fewer customer transactions, partially offset by an increase in the average customer transaction value. Sales in the third quarter of fiscal 2014 were strongest in the Consumables category, driven primarily by strong growth in refrigerated/frozen food and tobacco.

“We are executing our previously announced restructuring initiatives to improve our performance,” said Howard R. Levine, Chairman and CEO. “Our recent investment to permanently lower prices is resonating with customers; we are seeing savings from our workforce optimization efforts; and we are on track to close approximately 370 underperforming stores by the end of the fiscal year. We remain confident that these steps will position the Company to improve our financial performance and deliver higher long-term shareholder returns.”

Family Dollar sees Q4 2014 EPS of $0.75 - $0.85, versus the consensus of $0.78. The Company expects that comparable store sales will be approximately flat.

Family Dollar sees FY2014 EPS of $3.07 - $3.17, versus the consensus of $3.15. Sees low-single digit decline in comparable store sales.

For earnings history and earnings-related data on Family Dollar Stores, Inc. (FDO) click here.

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