Ugly forecast from Family Dollar could resonate in sector


The dollar store group and related discounters could feel pressure today after Family Dollar chops down its forecast for 2014 profits considerably.

While Family Dollar had tobacco and food sales to provide some support, companies relying on a higher mix of apparel and merchandise are at risk.

Retail analysts note that Family Dollar has a tendency to aim too high with its guidance, so the carnage in the sector could be spotty with some companies already leaning to the conservative side.

On watch: DG, DLTR, FIVE, BIG, GMAN, SMRT, ALCS, ROST.

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Comments (1)
  • harryjack
    , contributor
    Comments (568) | Send Message
     
    $FDO pulling down $FIVE is not logical as $FIVE is on totally different playing field relating to product mix, store expansion being in earlier phase, and $FIVE had strong seasonal product offerings for holidays. Financially, FIVE also much more conservative. $FIVE is a buy on the dip.
    9 Jan 2014, 01:54 PM Reply Like
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