Family Dollar Stores, Inc. (NYSE: FDO) today reported record earnings results for the fourth quarter and year ended August 31, 2013.
Net income per diluted share in the fourth quarter of fiscal 2013 increased 27.5% to $0.88. Included in the results for the fourth quarter of fiscal 2013 was a one-time $5.0 million favorable adjustment related to a change in accounting for certain vendor allowances. Excluding this adjustment and the litigation charge of $11.5 million in the fourth quarter of fiscal 2012, earnings per diluted share in the fourth quarter of fiscal 2013 would have increased 14.7% to $0.86 as compared to $0.75 in fiscal 2012.
Net income per diluted share in fiscal 2013 increased 7.0% to $3.83. Excluding the accounting adjustment in fiscal 2013 and the litigation charge in fiscal 2012, earnings per diluted share would have increased 4.4% to $3.80 as compared to $3.64 in fiscal 2012. Consistent with the National Retail Federation Calendar, the Company’s fiscal 2013 included 53 weeks as compared to 52 weeks in fiscal 2012. The Company estimates this extra week contributed approximately $189 million in sales and $0.07 of earnings per diluted share.
“This morning we reported record sales and earnings results for the fourth quarter and fiscal 2013,” said Howard R. Levine, Chairman and CEO. “While the environment was more challenging than expected, I am pleased with our progress. We have increased our market share, we have stabilized margins and we are increasing profitability. Our strategy is working, and we remain on course with our long-term goal to drive continued profitable growth and increase shareholder returns.”
Fourth Quarter Results
Total net sales for the fourth quarter of fiscal 2013 increased 5.8% to $2.5 billion compared with total net sales of $2.4 billion in the fourth quarter of fiscal 2012. Comparable store sales in the quarter were flat. Customer traffic and the average customer transaction value were flat during the quarter. Sales were strongest in the Consumables category, which increased 8.3% during the quarter, driven primarily by strong growth in refrigerated and frozen food, health aids, and tobacco.