Family Dollar (FDO) Reports Earnings Below Estimates

NEW YORK (TheStreet) -- Family Dollar  (FDO) reported second-quarter earnings that missed analysts' expectations and also announced the closure of 370 stores.

The discount store reported earnings per share of 80 cents, which came up short of the Capital IQ consensus estimate of 90 cents. Revenue declined 6.1% year over year to $2.72 billion, which was less than expectations of $2.77 billion. Family Dollar noted an extra week in the quarter contributed approximately $189 million in sales and 7 cents per diluted share. The company also estimated harsh winter weather had negative influence of at least 5 cents per diluted share.

Family Dollar also issued guidance for the third quarter and fiscal year below expectations. For the third quarter, the company expects earnings per share of 85 cents to 95 cents, less than the Capital IQ consensus estimate of 97 cents a share. Family Dollar also anticipates comparable-store sales to decline in the low-single-digits.

For the full year, Family Dollar expects earnings per share of $3.05 to $3.25, less than the estimate of $3.38. The company reduced its guidance from a previous range of $3.25 to $3.55.

Family Dollar also announced it would close 370 under-performing stores of its approximately 8,100 stores. It now plans to open 350 to 400 stores in the next fiscal year rather than the 500 it had planned.

The stock was up 0.8% to $59.54 at 9:50 a.m. on Thursday.

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