MATTHEWS, N.C. — Rising gas prices and a cautious consumer environment continues to benefit the dollar store, with Family Dollar being the latest example. The company reported that net income for the second quarter of fiscal year 2012, ended Feb. 25, increased 10.7% to $136.4 million, compared with net income of $123.2 million for the second quarter of fiscal year 2011. Net income per diluted share for the quarter increased 17.3% to $1.15, compared with 98 cents for the same period last year.
Total net sales for the second quarter increased 8.6% to nearly $2.5 billion, compared with total net sales of roughly $2.3 billion in last year's second quarter. Comparable-store sales increased 4.5%, thanks to increased customer traffic and increased average ticket. Sales were strongest in the consumables and seasonal and electronics categories, the retailer noted.
"I'm very pleased to report that we delivered our 16th consecutive quarter of double-digit earnings per share growth. Our investments to improve the shopping experience and broaden our customer appeal are gaining momentum and continue to drive higher returns for our shareholders," Family Dollar chairman and CEO Howard Levine said. "Our strategy to provide value and convenience continues to resonate in this economic environment. As we execute against our strategic plan, our store teams are working hard to expand our merchandise assortment to better meet our customer's needs and drive further market share gains."
For the third quarter, the company expects that comparable-store sales will increase between 5% and 7%, adding that earnings per diluted share will be between $1.01 and $1.11, compared with 91 cents in the third quarter of fiscal 2011.
For the full year, the company expects that earnings per share will be between $3.55 and $3.75, compared with $3.12 in fiscal 2011.