Friday, October 03, 2008
Family Dollar Enjoys Profit Boost During Economic Slump
We all know the U.S. dollar doesn't go as far as it used to thanks to inflation, Wall Street panic and countless other factors. The crisis has actually translated into good news for stores such as Family Dollar. During the economic slump. Anxious Americans are snatching up the best deals they can find, and they've provided a profit boost for bargain retail chains. An article at cnnmoney.com stated that Family Dollar's fourth-quarter profit rose to $53.2 million, up from $37.8 million from last year.
Family Dollar's Chairman and Chief Executive Howard R. Levine told CNN that there were several factors for the impressive growth.
"Fourth-quarter sales benefited from the effect of the government stimulus checks distributed this summer," Chairman and Chief Executive Howard R. Levine said in a statement. "Strong sales of consumables and effective management of inventory risk, combined with disciplined expense control resulted in robust earnings growth...while we are not immune to the current economic conditions, our strategy of providing customers with value and convenience positions us well within today environment."
I'm convinced the bailout bill will pass, there are still plenty of people looking for work and there's no guarantee that the plan will make an immediate impact. In my opinion, it's still a good idea to bet your dollars on Family Dollar, because so far, everyone's loss has become one store's gain.
By Matt O'Hern at 12:07 PM | Comments (0)