Oct. 9, 2013, 7:26 AM
- Shares of Family Dollar (FDO) slip 1.5% premarket after the company beats profit estimates for FQ4, but sets uninspiring guidance for FY14.
- The company says it sees a low-single-digit increase in comparable store sales for FY14.
- In what could be an alarming trend, retail analyst Rahul Sharma notes the Family Dollar sold margin up even with low-margin food sales rising.
- On watch: Dollar General (DG), Dollar Tree (DLTR), Five Below (FIVE).
Oct. 9, 2013, 7:10 AM
- Family Dollar (FDO) reports customer traffic and the average customer ticket were flat during FQ4.
- Gross profit as a percentage of sales rose 90 bps to 34.7% as higher markups and lower freight expenses helped the retailer's bottom line.
- The company sets initial FY14 EPS guidance at $3.80-$4.15. (PR)
Oct. 9, 2013, 7:02 AM
Oct. 9, 2013, 12:05 AM
Oct. 8, 2013, 5:30 PM
Sep. 26, 2013, 10:53 AM
- The backlash against the DOJ for its harsh stance in the planned merger between US Airways (LCC -0.1%) and American Airlines (AAMRQ.PK) continues as union reps hammer away at the government for interference they claim will lead to job losses.
- Lawyers for the two carriers have been asking a federal judge to allow them to see who's been talking to the DOJ. The industry as a whole wants the merger to go through so that capacity discipline can be maintained, but it's a possible there's a mole in the group.
- The big picture: Other industries are watching the case very closely as an emboldened DOJ has tempered enthusiasm from some companies considering other high-profile mergers. DirecTV (DTV) - Dish Network (DISH) and Dollar General (DG) - Family Dollar (FDO) combinations come to mind.
Sep. 23, 2013, 12:34 PM| Comment!
Sep. 4, 2013, 11:30 AM
- A scan of Dollar General's (DG +5%) Q2 report shows the company didn't buy back very many shares since it put out a press release on June 18 updating investors on its repurchases.
- The pullback over the last few months in buybacks has raised speculation the company is stockpiling cash to make a run at Family Dollar Stores (FDO -0.3%). During the firm's earnings call, execs didn't offer any specific guidance on buybacks for H2 to resolve the issue one way or the other.
Sep. 4, 2013, 7:36 AM
- Shares of Dollar General (DG) move up 1.7% premarket after the firm's Q2 numbers come in stronger than expected.
- During a tough quarter for retail, Dollar General doubled comp store growth from Q1. Analysts think the drop in Dollar General's margins due to a shift in mix was well-telegraphed and not quite as steep as some forecasts.
- Sector watch: FDO, DLTR, FIVE.
Sep. 3, 2013, 1:18 PM| Comment!
Sep. 3, 2013, 12:44 PM
Aug. 28, 2013, 10:50 AM
- Retail traffic to U.S. stores has declined in 8 out of the last 10 weeks, according to data compiled from ShopperTrak.
- Though a few on-trend firms such as Michael Kors (KORS +0.1%) and Express (EXPR +8.5%) are still firing on all cylinders, and a heat wave in the Midwest has had an effect, the overall trend for the back-to-school season and holiday season looks weak.
- Analysts also think consumers are likely to pick up their reliance on deals as discretionary spending on housing and automobiles "crowds out" normal outlays.
- Related ETFs: XRT, RTH, PMR, RETL.
- Related stocks: APP, AEO, ANF, AZO, BBBY, BBY, BJ, CHS, COH, COST, DG, FDO, FL, GPS, HD, JCP, JNY, JWN, KSS, LTD, LULU, M, NDN, ODP, ORLY, PIR, RGS, RL, SKS, SPLS, TGT, TIF, TJX, UA, UNFI, URBN, VFC, WMT, WRC, ZLC.
Aug. 26, 2013, 9:41 AM
- Deutsche Bank thinks shares of Dollar Tree (DLTR +1.6%) look more attractive than those of Family Dollar (FDO +0.2%).
- While valuation on Family Dollar has run up a bit too much, the firm sees upside for Dollar Tree with easier sales comps upcoming and the retailer's ability to generate higher free cash flow still in play.
Aug. 21, 2013, 1:40 PM
- Retail is in a state of "bifurcation" as on-trend luxury retailers (KORS, JWN, TIF) and home improvement specialists (HD, LOW) thrive, while heavyweight merchandise retailers (WMT, TGT, COST), mall-based apparel chains (AEO, ARO, LTD), and discounters (DG, DLTR, FDO) disappoint.
- As execs with Target noted during the firm's earnings call this morning, consumers seem more than happy to buy new automobiles and fix up their houses - but have tightened up on toothbrushes, socks, and soap.
- A few companies - through some good luck and solid execution - sit in a consumer demand sweet spot. Ross Stores (RST), TJX Companies (TJX), and Subaru (FUJHY.PK) come to mind.
- Related ETFs: XRT, RTH, PMR, RETL.
Aug. 21, 2013, 9:32 AM
- AIG remains the "king of the hedge fund castle" writes ValueWalk, as Goldman's latest Hedge Fund Monitor shows 69 funds have the stock in their top 10 holdings as of June 30, ahead of #2 Google (GOOG) at 65 and #3 Apple (AAPL) at 50. The percent of equity cap owned by hedge funds is 14% for AIG, as opposed to negligible amounts for both Google and Apple.
- Based on percent of equity cap owned by hedge funds, Charter Communications (CHTR) is the #1 hedge fund hotel at 37%. Among S&P 500 stocks, J.C. Penney at 36%, Constellation Brands (STZ) at 30% and H&R Block (HRB) at 26% lead the way. The average for the entire S&P 500 is 5%.
- Goldman's basket of 20 "Most concentrated" hedge fund stocks has outperformed the S&P 500 by nearly 1200 bps YTD. Since 2001, the strategy has outperformed the S&P 69% of the time and by an average of 263 bps per quarter. In addition to the earlier-mentioned names there's: AN, VRSN, FDO, THC, CBG, GT, NFLX, TRIP, LYB, WPX, MSI, BEAM, DLTR, ZTS, WYN, LM, ETFC.
Aug. 20, 2013, 9:47 AM
- A solid quarter from TJX Companies (TJX +4.6%) and a raise in guidance helps confirm a stepping-down trend in retail as consumers shop for values.
- Fellow off-price specialist Ross Stores (ROST) is up 3% on the day off the same optimism shoppers will flock to its stores.
- The consumer spending pattern could also be an influence for the dollar store group (DG, DLTR, FDO).
FDO vs. ETF Alternatives
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.
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