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Family Dollar Stores Inc. (FDO)

- NYSE
  • 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.
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  • Thu, Jan. 8, 7:21 AM
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  • 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
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  • Wed, Jan. 7, 5:30 PM
  • Fri, Jan. 2, 8:51 AM
    • Family Dollar Stores (NYSE:FDO) will report FQ1 results on Jan. 8.
    • The conference call is scheduled to begin at 10.00 a.m. ET.
    • Consensus view is EPS of $0.62 on revenues of $2.57B.
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  • Dec. 23, 2014, 10:31 AM
    • The Family Dollar (FDO +0.2%) shareholder meeting has been adjourned to January 22, according to the Charlotte Observer.
    • The delay was expected with the FTC yet to finalize its ruling on the amount of store closings it requires in a Dollar General (DG +1%) acquisition of Family Dollar.
    • Recap: Dollar General is in with a $9.1B offer for FDO to top the $8.5B Dollar Tree (DLTR +0.9%) bid which is preferred by the target's board
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  • Dec. 19, 2014, 9:57 AM
    • Dollar General (DG -1.1%) announces it remains "actively engaged" with the FTC on the amount of store divestitures needed to see the regulator clear a Family Dollar (FDO -0.4%) acquisition.
    • The company says its brief statement will be the last update on the issue prior to the scheduled Family Dollar shareholder meeting on December 23.
    • What to watch: Dollar General is one of the retail names picked by some analysts to see a sales boost tied to lower gas prices in the U.S. The company is already running up against a soft storm-impacted comp from last winter.
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  • Dec. 11, 2014, 5:52 PM
    • In a new 13D, Elliott Management says it now owns a 7.7M-share (6.8%) stake in Family Dollar (NYSE:FDO).
    • Two months ago, the activist disclosed a 4.9% stake in FDO, and called on the discount retailer to provide Dollar General with "an even playing field in its continuing efforts to acquire the Company." Last week, Dollar Tree said it expects its pending acquisition of FDO to close by early February.
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  • Dec. 5, 2014, 9:44 AM
    • Dollar General (NYSE:DG) responds to an update from Dollar Tree (NASDAQ:DLTR) on the chase for Family Dollar (NYSE:FDO) within hours.
    • The company holds its position that prices at Wal-Mart are what determine its own pricing decisions.
    • The working theory is that a DG-FDO combination wouldn't lead to widespread price increases for consumers.
    • Good progress on talks with the FTC on store divestitures is reported by Dollar General.
    • An update (higher offer?) to Family Dollar shareholders is also promised.
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  • Dec. 5, 2014, 7:20 AM
    • Dollar Tree (NASDAQ:DLTR) says it expects a deal to acquire Family Dollar (NYSE:FDO) will close by early February.
    • The discounter thinks it will only have to divest a small number of stores.
    • Talks with the FTC over the matter are still progressing.
    • Dollar Tree couldn't resist taking a shot at Dollar General (NYSE:DG) over its chase of Family Dollar, noting the FTC is likely to ask for divestitures far in excess of the 1,500 stores offered up to DG.
    • Family Dollar shareholders are schedule to vote on the Dollar Tree offer on December 23.
    | 1 Comment
  • Dec. 4, 2014, 8:26 AM
    • Dollar General (NYSE:DG) says it remains committed to its acquisition bid for Family Dollar (NYSE:FDO).
    • The company plans to give an update on its offer before the Family Dollar shareholder meeting scheduled for December 23.
    • Some retail analysts are taking that as an indication a higher offer is coming down the pike.
    • Dollar Tree (NASDAQ:DLTR) will be dialed into the developments.
    • Family Dollar closed yesterday at $79.48, just below the $80 Dollar General offer price.
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  • Dec. 1, 2014, 1:02 PM
    • Deutsche Bank says Family Dollar (FDO +0.4%) was one of the surprise stories of Black Friday 2014 as a toy deal drove strong store traffic.
    • The discounter dialed up its promotional activity with a buy-one-get-one-free toy offer.
    • The company was also more aggressive with Thanksgiving store hours this year, keeping doors open for 11 hours on the holiday.
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  • Nov. 29, 2014, 10:29 AM
    • Analysts with Gasbuddy.com predict some gas stations in the U.S. will offer $2 per gallon gas by Christmas.
    • The last time the average price of gas in the U.S. was below $2 was in March of 2009.
    • Forecasts from economists vary widely on the overall gas benefit to consumers for Q4. The high end from the group is an outlook of $300 per household, while the low end is closer to $100.
    • Most analysts see an immediate lift for retail chains with large distribution channels. Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), Dollar General (NYSE:DG), Family Dollar (NYSE:FDO), Dollar Tree (NASDAQ:DLTR), Big Lots (NYSE:BIG), and Five Below (NASDAQ:FIVE) come to mind.
    • Airline stocks (JBLU, DAL, UAL, LUV, AAL, RJET, ALK, HA, ALGT, VA) have already ripped strong gains off the OPEC news, although some see even more long-term upside as forward fuel hedges get reworked.
    • A sustained period of low gas prices should lift restaurant stocks  (CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATHLUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN) say some analysts.
    • The gaming sector is (CZR, PNK, BYD, ISLE, CNTY, MCRI, MGM, NYNY) also an off-the-radar pick to bounce.
    | 146 Comments
  • Nov. 19, 2014, 12:38 PM
    • Family Dollar (FDO -1.1%) pushes back the date that shareholders will vote on the proposed merger with Dollar Tree (DLTR +0.2%) to December 23.
    • The company expects to have an update by the end of the first week in December on a FTC review of the combination.
    • The development doesn't give Dollar General (DG -3.5%) much time to decide if it will raise its offer for Family Dollar amid reports more stores than anticipated will need to be divested to clear regulatory hurdles.
    • Previously: FTC may require Dollar General to divest 4K+ stores
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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.