Record Per Share dilluted earnings 26.6% increase

Family Dollar Reports Record Earnings Results
Fiscal 2010 Earnings Per Diluted Share Increased 26.6% to $2.62
Operating Profit Expands to 7.3% of Sales from 6.2% of Sales in Fiscal 2009
Company Announces Acceleration of New Store Openings and Aggressive Store Renovation Program
Company Announces Authorization to Purchase $750 Million of Common Stock
MATTHEWS, N.C., Sep 29, 2010 (BUSINESS WIRE) --

Family Dollar Stores, Inc. (NYSE: FDO) today reported that net income per diluted share for the year ended August 28, 2010 ("fiscal 2010"), increased 26.6% to $2.62 compared with $2.07 for the year ended August 29, 2009 ("fiscal 2009"). Net income for the year increased 23.0% to $358.1 million compared with net income of $291.3 million in fiscal 2009.


"Our efforts to broaden the appeal of our assortment, improve the in-store shopping experience, enhance our customer communications, and strengthen our employee teams, resulted in strong improvements across most key metrics," said Howard R. Levine, Chairman and Chief Executive Officer. "I am very proud of this performance, and I appreciate the hard work and dedication of all our 50,000 Family Dollar Team Members."


I imagine that there is a two fold story going on here to have such adramatic impact on income. One they are increaseing stores like a wild fire, so revenue is increasing. I also imagine they have have been cutting out the middle suppliers and increase direct sourcing activities to get better cost and better value added products on the shelf. 23% increase in earning is huge. They run a tight ship at FDO.

Sales up 6.1%

MATTHEWS, N.C., Sep 02, 2010 (BUSINESS WIRE) --
Family Dollar Stores, Inc. (NYSE:FDO) reported that net sales for the fourth quarter ended August 28, 2010, increased 8.0% to $1.957 billion from $1.811 billion in the fourth quarter ended August 29, 2009. Comparable store sales for the quarter increased 6.1%. Sales during the quarter were strongest in the Consumables category. The Company had 6,785 stores as of August 28, 2010, including 75 new stores opened in the fourth quarter.
"Customers continue to respond well to the values and convenience we offer," said Howard Levine, Chairman and CEO. "In fiscal 2010, we enhanced our assortment, worked to make our stores easier to shop, and expanded our operating hours to provide our customers with more convenience. These investments have delivered solid results and position us well for continued growth in fiscal 2011."

Family Dollars Mission Statement

Mission Statement:

“Family Dollar’s mission is to be a compelling place to work for our Associates, a compelling place to shop for our customers and a compelling place to invest for our shareholders. In pursuing this mission, the Company is committed to conduct its business in accordance with the highest standards of ethical behavior and sound principles of corporate governance.”

Taking a closer look at Family Dollars’ mission statement reveals their current focus as a corporation. First, they want their employees know that they care and want them to be challenged.  Second want customers to know they should expect positive shopping experience. Third they reinforce to shareholders that they provide a good environment for them to put their money. 

I am compelled to interpret this mission state as somewhat overly concise and lacking of a variety of power verbiage by over using compelling.  They could have used a challenging workplace for employees or rewarding place to invest for our shareholdings. For their customers they could give them an exciting place to shop. They are doing good financially and leading their retail segment in growth and sales; I feel they could have a stronger mission statement.  Any one else have thoughts to share?

Corporate Governance

Family Dollar’s mission is to be a compelling place to work for our Associates, a compelling place to shop for our customers and a compelling place to invest for our shareholders. In pursuing this mission, the Company is committed to conduct its business in accordance with the highest standards of ethical behavior and sound principles of corporate governance. This is why they need so many executives.

Senior Management:

Howard R. LevineChairman of the Board and Chief Executive Officer

Mr. Levine has been the Chairman of the Board since January 2003 and Chief Executive Officer of Family Dollar since August 1998. Mr. Levine was employed by the Company in various capacities in the Merchandising Department from 1981 to 1987, including employment as Senior Vice President – Merchandising and Advertising. From 1988 to 1992, Mr. Levine was President of Best Price Clothing Stores, Inc., a chain of ladies’ apparel stores. He rejoined the Company in April 1996, and was elected Vice President – General Merchandise Manager: Softlines in April 1996, Senior Vice President – Merchandising and Advertising in September 1996, President and Chief Operating Officer in April 1997, and Chief Executive Officer in August 1998. In addition, Mr. Levine serves as a member on the Equity Award Committee. He is the son of Mr. Leon Levine, the Founder of the Company who retired in January 2003.

The rest of senior management:

R. James KellyPresident, and Chief Operating Officer
Dorlisa K. FlurExecutive Vice President – Chief Merchandising Officer
Charles S. Gibson, Jr.Executive Vice President – Supply Chain
Barry SullivanExecutive Vice President – Store Operations
Kevin Boyanowski Senior Vice President - Global Sourcing
Bryan P. CauseySenior Vice President – Planning, Allocation, and Replenishment
Keith  M. GehlSenior Vice President - Real Estate and Facilities
Don HamblenSenior Vice President - Customer Marketing
Joshua  R. JewettSenior Vice President – IT and Procurement, Chief Information Officer
Thomas M. NashSenior Vice President - Real Estate Development
John J. ScanlonSenior Vice President – Merchandising
Kenneth T. SmithSenior Vice President – Chief Financial Officer
James C. Snyder, Jr.Senior Vice President, General Counsel & Secretary

C. Martin SowersSenior Vice President – Finance

Bryan VenbergSenior Vice President – Human Resources

In addition to the many senior executives, they are made up of a Board of directors and various committees

for auditing, nominating, and compensating.

Headline: 4th quarter sales approach $5 billion.

Before I go into more about the company profile.  I saw the Aug. 28, 2010  company release of the 4th quarter earnings of $1.97 billion dollar which resulted in an 8% gain.  Talk about a recession proof industry.  I will be curious to see if sales go down after the recession is over or if the their market presence and growth make up for it.