MATTHEWS, N.C. — Family Dollar Stores on Wednesday reported a net sales increase of 9% to $2.6 billion for third quarter ended June 1, reaching the upper end of the discount chain's guidance. Comparable store sales in the quarter increased 2.9%.
Family Dollar attributed the increase in comparable store sales to an increase in the average customer transaction value and higher customer traffic. Sales were strongest in the consumables category, which increased 14.8% during the quarter, driven primarily by strong growth in food, health and beauty aids and tobacco.
“Our consumables sales remained strong, and we continued to gain market share," noted Howard Levine, Family Dollar chairman and CEO. "However, our discretionary sales remained challenged as our customers have been forced to make spending choices between basic needs and wants. Consistent with market trends, we expect that our customers will continue to face financial headwinds," he said. "We are adapting accordingly, and we are focused on stabilizing gross margin, controlling expenses, improving inventory productivity and driving greater operational efficiencies."