Q1 sales up, comps down at Family Dollar as dollar store chain announces two management changes

MATTHEWS, N.C. — Family Dollar reported sales of $2.5 billion in first quarter 2014, a 3.2% increase over the same period last year, the dollar store chain said Thursday.

For the 13-week quarter that ended Nov. 30, the chain said sales were strongest in refrigerated and frozen food, health aids and tobacco. Same-store sales during the quarter decreased by 2.8% due to fewer customer transactions and a slight decrease in average customer transaction value.

"Today, we reported sales and earnings for the first quarter of fiscal 2014 ghat were in-line with our previously provided guidance," chairman and CEO Howard Levine said. "As expected, comparable store sales were pressured, as we anniversaried strong consumable sales growth last year. In addition, our core customers continued to face economic uncertainties, and the promotional environment intensified."

Profit for the quarter was $78 million, compared with $80.3 million in first quarter 2013. The chain opened 126 new stores, closed one and renovated, relocated or expanded 179, for a total store count of 8,041. The company expects its second quarter 2014 comps to experience a decline in the low-single-digit range.

In addition, the company announced two major management changes Thursday, including the departure of president and COO Mike Bloom and the promotion of Jason Reiser to EVP and chief merchandising officer.