Earnings per diluted share were nearly flat in the third fiscal quarter ended May 30, 2015 at US based and NYSE listed Family Dollar Stores, Inc. Family Dollar reported earnings per diluted share at $0.70 in the third quarter of fiscal 2015 compared to $0.71 in the third fiscal quarter ended May 31, 2014. Excluding $4.7 million of expenses related to the pending merger with Dollar Tree and $24.5 million of restructuring charges, adjusted earnings per diluted share in the third quarter of fiscal 2015 was $0.74. “This compares with $0.85 in the third quarter of fiscal 2014,” a press release from Family Dollar informed. Total net sales in the third quarter of fiscal 2015 increased 2.6 per cent to $2.73 billion from $2.66 billion in the third quarter of fiscal 2014. Comparable store sales for the 13-week period rose 0.7 per cent as a result of an increase in the number of customer transactions, which was partially offset by a decrease in the average customer transaction value. Gross profit for the reporting quarter expanded 3.5 per cent to $943.2 million, or 34.6 per cent of net sales as against $910.9 million, or 34.3 per cent in the prior fiscal third quarter. “As a percentage of net sales, the benefit of lower markdowns and higher merchandise markups was partially offset by increased sales of lower-margin consumables in the third quarter,” the retailer explained Selling, general and administrative (SG&A) expenses in the third quarter of fiscal 2015 were $812.2 million, or 29.8 per cent of net sales, as compared to $767.0 million, or 28.8 per cent of net sales. “The increase in SG&A, as a percentage of net sales, was primarily a result of higher store occupancy costs, higher insurance expense, and higher store payroll expense,” Family Dollar observed. The impact of these increases was partially offset by lower corporate payroll and lower advertising expense in the third quarter of fiscal 2015 as compared to the third quarter of fiscal 2014. Operating profit for the quarter under review amounted to $126.3 million or 4.6 per cent of net sales as against $120.8 million, or 4.5 per cent of net sales, in the third quarter of fiscal 2014. Net income in the third quarter of fiscal 2015 stood at $79.9 million compared with $81.1 million in the third quarter from previous fiscal. The Company’s merchandise inventories as on May 30, 2015, increased 2.5 per cent to $1.63 billion from $1.59 billion at May 31, 2014. Average inventory per store at the end of the third quarter of fiscal 2015 was approximately 2 per cent higher than the average inventory per store at the end of the third quarter of fiscal 2014. During the first three quarters of fiscal 2015, the Company opened 245 new stores and closed 26 stores as compared to 355 new store openings and 25 closings in the first three quarters of fiscal 2014.
