CEO Interview Family Dollar
Cramer talked with Family Dollar (FDO) chairman and CEO Howard Levine, to find out if the company’s recent success will continue. Shares of Family Dollar Stores surged 14% Wednesday after the company reported better-than-expected earnings. The company also raised its 2009 guidance, lowered its inventory levels and increased their gross margins. Levine said FDO is doing well with its food programs, which accept food stamps at many of its locations. He also said FDO plans to reap big rewards by accepting credit cards, which will position the firm for the trade-down customer. Levine mentioned the company plans to expand its private label program in 2009 by improving packaging and upgrading merchandise in the health product segment. Lastly, Levine said Family Dollar is taking steps to avoid theft by retaining management and reducing inventory. Cramer said Wall Street is underestimating Family Dollar. He told viewers to buy the stock and he expects many analysts will upgrade the name soon.
Another more recent Family Dollar CEO interview. Levin talks about teh inmportance of focusing on the customer and being adaptable.
Check out the youtube link:
http://www.youtube.com/watch?v=di1M99Y_3V4
With the type of store Family Dollar is, it is important to be able to focus on customer needs and adapt to those needs. In my opinion, it is a vital part of companies like that.
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