Family Dollar Store #758 located at 1945 South 3 Street, Southgate Plaza, Memphis.
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A slight decline in discretionary sales partially offset a 3.8% spike in consumables, the company said in a statement. There was a sigh of relief as revenue surpassed expectations although by a very slight margin, rated at 7.73 billion dollars; it surpassed the hopeful revenue of $7.72 billion, with sales rising a little above 3.8%. Calvano had founded Dollar Giant nine years earlier and was the operating principal who had built the chain to 86 stores at the time.
Shares of Dollar Tree have increased about 13 percent this year through Wednesday’s close. That will push it past Dollar General to be North America’s largest dollar-store-sector retailer with more than US$18 billion in annual sales.
Family Dollar ended the quarter with cash and cash equivalents of $216 million, long-term debt of $299.1 million, and shareholders’ equity of $1,854.1 million.
Working with the Federal Trade Commission, the state Attorneys General are requiring Dollar Tree to sell more than 300 Family Dollar stores to a new competitor in order to complete the acquisition.
Family Dollar shareholders overwhelmingly rejected the higher bid in January, opting for the lower offer from Dollar Tree based on belief that the transaction would more easily win federal approval. Family Dollar stores are expected to keep their current name as part of the deal.
The FTC released a list of store locations that Dollar Tree is required to sell to prevent a near monopoly in certain USA neighborhoods.
Dollar Tree won a bidding war with Tennessee-based Dollar General that also was interested in Family Dollar.
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Citing the pending merger, Family Dollar declined to offer a forward guidance for the remainder of the year. According to a recent poll by Bloomberg, 17 analysts now advise refraining from taking a position in Family Dollar. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and one has issued a buy rating to the stock.
