Family Dollar Stores, Inc. (NYSE: FDO) today reported that net income for the second quarter of fiscal 2012, ended February 25, 2012, increased 10.7% to $136.4 million compared with net income of $123.2 million for the second quarter of fiscal 2011. Net income per diluted share for the quarter increased 17.3% to $1.15 compared with $0.98 for the second quarter of fiscal 2011.
“I’m very pleased to report that we delivered our 16th consecutive quarter of double-digit earnings per share growth. Our investments to improve the shopping experience and broaden our customer appeal are gaining momentum and continue to drive higher returns for our shareholders,” said Howard Levine, Chairman and CEO. “Our strategy to provide value and convenience continues to resonate in this economic environment. As we execute against our strategic plan, our store teams are working hard to expand our merchandise assortment to better meet our customer’s needs and drive further market share gains.”
Second Quarter Results
Total net sales for the second quarter of fiscal 2012 increased 8.6% to $2.46 billion compared with total net sales of $2.26 billion in the second quarter of fiscal 2011. Comparable store sales increased 4.5%. The increase in comparable store sales was a result of increased customer traffic, as measured by the number of register transactions, and a slight increase in the average customer transaction value. Sales were strongest in the Consumables and Seasonal and Electronics categories.
Gross profit in the second quarter of fiscal 2012 increased 6.2% to $857.4 million compared with $807.4 million in the second quarter of fiscal 2011. Gross profit, as a percentage of net sales, was 34.9% in the quarter compared to 35.7% in the second quarter of fiscal 2011. The largest impact on gross profit, as a percentage of net sales, was stronger sales of lower-margin consumables, which was mostly offset by higher purchase mark-ups resulting from the Company’s continued investments in private brands, global sourcing and price management capabilities. In addition, higher markdowns and increased inventory shrinkage negatively impacted gross profit as a percentage of net sales.