Updated from Wednesday, July 9, with Family Dollar's fiscal third-quarter earnings and sales and fourth-quarter forecast, which were released early Thursday.
NEW YORK (TheStreet) -- "[W]e lost our way,... [W]e lost our core focus."
That was the confession of Family Dollar (FDO) CEO Howard Levine at an investor conference in late April. Roughly one month later, Carl Icahn disclosed he'd taken an over 9% stake in Family Dollar's shares and wanted the company put up for sale.
Family Dollar's crisis is profound enough that Levine, son of founder Leon Levine, may soon be ousted from the discount retailer, which has been family-run for more than a half century as the company expanded from a single Charlotte, N.C.-based storefront in 1959 to over 8,000 locations nationwide as of 2013. He has already fought for control with other large hedge funds, but Icahn presents Levine's biggest challenge yet.
Earnings continue to drop at Family Dollar. The company posted fiscal third-quarter earnings on Thursday of $81.1 million, or 71 cents a share, down over 30% from a year earlier and missing Wall Street forecasts. Third-quarter revenue rose 3.3% to $2.66 billion; analysts were looking for sales of $2.61 billion. Same-store sales fell for a third straight quarter, down 1.8%. Family Dollar expects flat same-store sales in the coming quarter.
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