Family Dollar Stores, Inc (NYSE:FDO) reduces profit projection- customers stretching dollar – C

Northern, WI 04/11/2013 (usastockreport) – The second largest dollar-store retailer in the United States, Family Dollar Stores, Inc (NYSE:FDO) (Current: $59.93, Up by 0.18%)has projected that its 2013 profit will be lower that what it had expected it to be earlier, as shoppers have been curbing discretionary spending. The Matthews, Carolina-based company said in a statement that its profit will be in the range of $3.93 per share in the current financial year. This amount had sipped from the January forecast of $4.20 that the company had announced and the $3.96 average analyst estimate. The company said that customers had been pulling in their purse strings and the demand for a large number of otherwise high demand products had reduced.

Cautious spending

Home décor, apparel and some other non-essential goods demand had dropped said the Family Dollar. Families are finding it very difficult to manage family budgets what with fuel costs and general commodity prices rising. The U.S economy has been on the rise, no doubt but it has not stabilized in the manner that it should. In the second quarter, the sales by stores that have been open for over 13 months saw an increase of 2.9 percent which trailed the estimates that had been put forth by Citigroup Inc (NYSE:C) (Current: $44.96, Up by 2.42%) and Guggenheim Securities.

The company operates a chain of over 7,400 retail discount stores that sell merchandise and are spread across 45 states. Family Dollar Stores sell an assortment of merchandise such as home products, consumable, electronics, accessories and apparels in addition to several other products.

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