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Family Dollar Stores Inc. (FDO)

- NYSE
  • Yesterday, 1:44 PM
    • Family Dollar (FDO) CEO Howard Levine plans to dump 1M to 2M shares over the next five days, according to a fresh SEC filing.
    • The exec is looking to diversify his assets.
    • Average daily volume on FDO is 2.52M shares.
    • SEC Form 13D/A
    | 1 Comment
  • Fri, Feb. 27, 11:31 AM
    • Factset has compiled a list of the most popular holdings of hedge funds at the end of Q4 and which stocks fell in or out of favor within the group.
    • Overall, hedge funds increased their positions in the top 50 holdings during the quarter by 1%.
    • Top 50 hedge fund consumer staples/discretionary stocks showing an increase: Family Dollar (NYSE:FDO) +1.3%, PepsiCo (NYSE:PEP) +20.3%, Priceline Group (NASDAQ:PCLN) +24.2%, Delta Air Lines (NYSE:DAL) +15.3%.
    • Top 50 hedge fund consumer staples/discretionary stocks showing a decrease: Mastercard (NYSE:MA) -4.2%, Walgreen Boots Alliance (NASDAQ:WBA) -1.3%, Dollar General (NYSE:DG) -11.6%, Mondelez International (NASDAQ:MDLZ) -0.9%.
    • Another way to look at the list is to examine which stocks are missing. Coca-Cola (NYSE:KO), Wal-Mart (NYSE:WMT), and Procter & Gamble (NYSE:PG) are in that club.
    • Factset's hedge fund ownership report (.pdf)
    | 16 Comments
  • Thu, Feb. 5, 9:08 AM
    • Kraft Foods (NASDAQ:KRFT) has found a vibrant channel for its Velveeta brand in dollar stores.
    • The company was very close to pulling the plug on the product last year amid soft grocery store sales.
    • General Mills (NYSE:GIS) and Campbell Soup (NYSE:CPB) are also exploring selling more brands in dollar stores due to the potential for higher profit margins in certain categories.
    • The development could aid the dollar store group (DLTR, DG, FDO) which has lost some quick-stop grocery market share to convenience stores.
    | 11 Comments
  • Tue, Feb. 3, 5:44 PM
    • Dollar Tree (NASDAQ:DLTR) says it has learned the FTC is reviewing more than 500 stores as it scrutinizes its plan to acquire Family Dollar (NYSE:FDO), after previously believing that the FTC would require the divestiture of no more than ~300 stores, according to an SEC filing.
    • Despite the caution, DLTR still expects the total number of divestitures to be about 300, and hopes to reach an agreement with the FTC by the end of the month.
    • FDO shareholders approved a deal last month to be sold to DLTR, choosing regulatory certainty over a riskier but higher offer from Dollar General (NYSE:DG).
    | Comment!
  • Tue, Jan. 27, 6:50 AM
    • Trian Fund Management cuts its stake in Family Dollar (NYSE:FDO) to 2.07% from 7.3% after selling close to 6M shares.
    • Last week, Family Dollar shareholders approved the $8.5B sale of the company to Dollar Tree (NASDAQ:DLTR).
    • SEC Form 13D
    | Comment!
  • Thu, Jan. 22, 9:38 AM
    • Shareholders with Family Dollar (NYSE:FDO) have approved the merger offer from Dollar Tree (DLTR +1.8%) as expected.
    • 74% of shareholders approved the merger of the discounters.
    • FDO trades at $76.20 vs. the buyout price of $74.50.
    • Shares of Dollar General (NYSE:DG) are taking the news well, up 2.4% in early trading.
    | 3 Comments
  • Thu, Jan. 22, 2:18 AM
    | Comment!
  • Thu, Jan. 15, 8:20 AM
    • Dollar General (NYSE:DG) says discussions with the FTC over the company's offer to acquire Family Dollar (NYSE:FDO) are ongoing.
    • The company has already has detailed talks with potential buyers for many of the Family Dollar stores which would need to be offloaded if a deal was struck.
    • Still, the discounter faces an uphill battle in the attempt to swallow up its sector rival.
    • Proxy firms Glass Lewis and ISS have both recommended that Family Dollar shareholders vote to merge with Dollar Tree (NASDAQ:DLTR).
    • FDO closed at $76.30 yesterday vs. the DLTR offer price of $74.50 and DG bid of $80.
    | 1 Comment
  • Thu, Jan. 15, 3:13 AM
    • Changing their previous stance, two influential proxy firms, Institutional Shareholder Services and Glass Lewis & Co, have advised Family Dollar (NYSE:FDO) shareholders to vote for the retailer's acquisition by Dollar Tree (NASDAQ:DLTR), saying it was more likely to close as it faced fewer antitrust hurdles.
    • Previously, Dollar Tree had said it would divest as many outlets as required to get antitrust approval for the deal, while Dollar General (NYSE:DG) stuck to its offer to shed up to 1,500 stores.
    | Comment!
  • Mon, Jan. 12, 6:55 AM
    • Family Dollar (NYSE:FDO) issues an open letter to shareholders in which it recommends they vote to approve a merger with Dollar Tree (NASDAQ:DLTR).
    • The company says economic analysis by the FTC on the Dollar Tree combination leads to a count of problematic stores of 310, compared to estimated 3K-4K which would likely be needed to be divested under the Dollar General (NYSE:DG) merger proposal.
    • A special meeting of Family Dollar shareholders is set for January 25 to vote on the DLTR offer.
    • Full letter
    | Comment!
  • Fri, Jan. 9, 8:35 AM
    | 110 Comments
  • Thu, Jan. 8, 8:18 PM
    • Holiday retail sales rose 4.6% vs. expectations for a 3.8% lift, according to a read from ShopperTrak. The growth rate is the highest since 2005 for the period.
    • The rush of positive reports from retailers on holiday sales comes off of some beaten-down expectations, notes Chain Store Age.
    • Concerns on mall traffic, a West Coast port slowdown, and a frenzied level of promotions drove consensus estimates lower before some macroeconomic factors improved and $2 gas entered the scene.
    • A cross-section of retailers that surprised on the upside includes Barnes & Noble, Pier 1 Imports, Walgreens, Urban Outfitters, and Sonic.
    • What to watch: Costco (NASDAQ:COST) put up a 5% comp for December, putting some pressure on Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) to show signs of late-quarter strength. Signs of weakness at dollar stores (DG, DLTR, FDO, FIVE) and electronics chains (HGG, CONN, BBY) are a concern. Retailers seen as on-trend for the holiday season include Foot Locker (NYSE:FL), Lululemon (NASDAQ:LULU), and Williams-Sonoma (NYSE:WSM).
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, UCC, PMR, UGE, RCD, SZK
    | 12 Comments
  • Thu, Jan. 8, 7:21 AM
    • Family Dollar (NYSE:FDO) reports comparable-store sales fell 0.4% in FQ1 as the retailer shifted to an "everyday" pricing strategy.
    • Gross profit rate -90 bps to 33.4% on a higher mix of food and tobacco sales impacted results.
    • Operating profit -170 bps to 3.1%.
    • SG&A expense rate +80 bps to 30.3%.
    • Merchandise inventory +4.1% to $1.71B.
    • Capex spending down 8% on fewer store openings.
    • FDO -1.0% premarket.
    | Comment!
  • Thu, Jan. 8, 7:21 AM
    | Comment!
  • Thu, Jan. 8, 7:03 AM
    • Family Dollar Stores (NYSE:FDO): FQ1 EPS of $0.44 misses by $0.18.
    • Revenue of $2.56B (+2.4% Y/Y) misses by $10M.
    • Press Release
    | Comment!
  • Wed, Jan. 7, 5:30 PM
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Company Description
Family Dollar Stores Inc provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes consumables, home products, apparel accessories, seasonal and electronics.