Family Dollar reports first-quarter results, announces president exit

Matthews, N.C. - Family Dollar profits fell 3%, to $78 million for the first quarter ended Nov.30, 2013, amidst higher payroll and store occupancy costs.

Howard Levine, ceo, said he is not satisfied with the company's results. "While we have made meaningful progress to improve our execution, our financial performance has not met our expectations," he said in a statement. "Many of the top-line challenges we faced in the first quarter, including a challenged consumer and an intensified promotional environment, have continued to impact our business. In addition, we reacted to softness in discretionary categories by leveraging promotions more than we originally planned," said Levine.

Net sales for the first quarter increased 3.2% to $2.5 billion compared to $2.4 billion in the first quarter of fiscal 2012. Income per diluted share was 68 cents. Comp store sales for the comparable 13-week period ended decreased 2.8% as a result of decreased customer transactions and a slight decrease in the average customer transaction value.

The company also announced the departure of president and coo Michael Bloom, who joined the company in 2011. "Mike has been a valued part of our team," said Levine, in a statement. "We appreciate his contributions to the company and wish him all the best in his future endeavors." A search is underway for his replacement.

In other personnel news, Jason Reiser was promoted to the position of executive vp and chief merchandising officer. He will report to Levine and will have responsibility for the company's merchandising, global sourcing, marketing, replenishment and financial planning teams.

During the quarter, the company opened 126 new stores, closed one store and renovated, relocated or expanded 179 stores.