MATTHEWS, N.C. — Family Dollar Stores here said Wednesday it hopes to accelerate top-line growth by continuing to expand its assortment of traffic-driving consumables while increasing its marketing efforts.
Consumables accounted for 60.8% of total sales through the first half of fiscal 2010, up 10 basis points, Kenneth T. Smith, senior vice president and chief financial officer, said during a conference call with investors to discuss financial results for the second quarter, which ended Feb. 27.
Net income for the quarter rose 33.4% to $112.2 million, while sales jumped 4.9% to $2.1 billion and comparable-store sales rose 3.6%. For the half, net income increased 25.4% to $179.8 million, with sales rising 4.5% to $3.9 billion; the company did not release a comp-sales number for the half. Comp sales rose 11% during March, Smith added, noting that comps are projected to be up 6% to 8% for the quarter.
He said customer traffic continued to be the primary driver of comp sales, with consumables being the primary driver of traffic. Customer visits are up 5% this year on top of a 15% increase last year, he noted, and average ticket sales also increased.
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