In yet another sing that the US Economy is on fire, Family Dollar Stores Inc (FDO) announced that they will be closing 370 stores and slowing their new-store growth after their net income collapsed 35% from a year ago. Family Dollar is said to be feeling the pinch after it’s lower and middle class customer base has been decimated by the FED for the benefit of the rich. Family Dollar anticipates that it will be able to transfer most of it’s closed store leases to the likes of Prada, Gucci and Versace. Enough said.
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
Click here to subscribe to my mailing list
OBJ Writes: Family Dollar to close 370 stores
Family Dollar Stores Inc. will close 370 stores, slow new-store growth and take other strategic actions as its earnings continue to falter.
On Thursday morning, the Matthews, N.C.-based discount retailer (NYSE: FDO) said its net income fell 35 percent to $90.9 million, or 80 cents per diluted share, for the second fiscal quarter ended March 1.
In the same period last year, the company earned $140.1 million, or $1.21 per diluted share.
Family Dollar intends to take what it describes as “immediate, strategic actions,” said CEO Howard Levine.
That includes plans to close approximately 370 underperforming stores and reduce the company’s work force.
Family Dollar also plans to slow new-store growth beginning in fiscal 2015, with plans to open between 350 and 400 stores. That’s down from 525 stores this fiscal year.
Family Dollar operates about 8,100 stores in 46 states, including about 44 stores in Central Florida. It has about 34,000 employees.