Family Dollar Stores
During the recent economic and financial crisis, discount retailers flourished in the US. The shrinking middle class and declining median household incomes have led to a drastic change in the spending habits of US residences over the years. Aided by greater availability of information and poor economic conditions, more and more shoppers are actively searching for bargains and value. And per a Kantar Retail report, this change in consumer shopping more »
Five Below (NASDAQ: FIVE) is a specialty retail company that offers a large variety of accessories for five dollars or less. The company was founded in 2002, went public last year in August 2012, and rocketed 53% on the IPO from $17 to $26 and continued to surge into the 30s soon after. The stock was already recognized as a great growth story and instantly became a Wall Street more »
Investors who live outside of the U.S. heartland have probably never heard of Abilene, Kansas-based ALCO Stores (NASDAQ: ALCS), one of the few remaining retailers to maintain the "neighborhood general store" concept in an increasingly competitive and fragmented marketplace. However, ALCO could turn into the subject of a rare and potentially lucrative bidding war that draws investors from all corners of the market.
Argonne Capital launched the opening round more »
History has shown that during austerity drives, companies that help in cutting costs are the ones that benefit the most. So it doesn’t take a rocket scientist to figure out why the shares of most discounted variety stores have outperformed over the last couple of years. And since the unemployment rate is still high, while the inflation rate is below 2%, these retail chains will most likely continue their more »
Note: This article has been amended to correct Dollar Tree's operating margin. Motley Fool apologizes for the error.
If the world returns to a recession (not something I view as likely, but you never know), there are a series of companies which will do comparatively well – dollar stores. They have an obvious value proposition, and solid margins – Dollar General (NYSE: DG) reported an operating margin of 10.2% for more »
Depressed 22 year old man walks into a store. The girlfriend just dumped him. On his smartphone reads a message," Shake it off dude, here's 10% off your favorite beer."
The technology is already there to read your mood, guess your gender, and your approximate age. As a New York Times article reported earlier this week several retailers are already using or testing the technology like Family Dollar (NYSE: FDOmore »)
Discount retailer Family Dollar Stores (NYSE: FDO) operates a chain of approximately 7,600 self-service general-merchandise retail discount stores in 45 states, providing consumers with a selection of merchandise in neighborhood stores. It primarily caters to low- and middle-income consumers in the United States, which makes it an interesting stock to buy since it might offer investors the much-needed protection their portfolio may need in times of economic uncertainty.
What more »
Dollar stores like Family Dollar would like to be a threat to drugstore operators like the Walgreen Company (NYSE: WAG) and CVS Caremark. The so-called small box discounters sell many of the same products as drugstores at a lower price, and they target many of the same low-income customers. Yet the truth is that it might be drugstores that are the threat to dollar stores.
Family Dollar’s newspaper inserts more »
Wholesale distributor and independent retailer SUPERVALU (NYSE: SVU) recently released its quarterly earnings. The results were better than expected as the company was easily able to beat consensus estimates.
If you think that investment in a grocer is not a potentially good use of your money, I think you should reconsider because, according to me, if the company sticks to its plans, it should deliver good returns.
Let’s take more »
While the U.S. economy continues to chug along, there were signs of weakening growth in the second quarter. The Commerce Department reported that June retail sales increased 0.4%, not quite the 0.8% average growth estimated by 82 economists surveyed by Bloomberg.
Demand did not change much from May, and the recent data reported lead to a downward revision of May’s retail sales, from 0.6% to more »
As a dividend growth investor, I look to compound my gains through companies that consistently increase their dividends. However, there is more to it than finding a company that pays out a juicy amount. If you invest in companies that are growing their dividends rapidly, your income stream will compound faster.
Let's take a look at some companies that fit this criteria. We will examine dividend growth rates over more »
After the announcement of positive third-quarter results, Family Dollar Stores’ (NYSE: FDO) share price rose 7% the very same day. However, investors failed to observe the results closely, thus they didn’t realize that falling profits and declining margins are not very good signs for the company.
The company took a major beating in January after its results for the first quarter were published as it trimmed its whole year more »
The two leading dollar stores have been on a tear thanks to the economic downturn. Yet, even as the economy is rebounding, Dollar General (NYSE: DG) and Family Dollar Stores (NYSE: FDO), continue to outshine the retail giant Wal-Mart (NYSE: WMT). Each dollar store has outpaced the retail giant by nearly 100 percentage points over the last five years.
The beauty of what the dollar store operators have done includes more »
Discount store Family Dollar Stores (NYSE: FDO) has been constantly looking to expand its neighborhood stores and widen its reach by opening new stores, renovating existing ones, adopting innovative merchandising strategies, and expanding the supply chain. This was the reason why the company saw an improvement in revenue in its previous quarterly report.
But the company's margins fell because of higher sales of low margin products leading to a more »
A typical discount store is one that sells products at prices lower than those asked by traditional retail outlets, with most of them offering a wide assortment of goods while others specialize in such merchandise as jewellery, electronic equipment, or electrical appliances. Post-recession, discount retailers gained great strength as many customers traded down from regular retail channels. Dollar stores gained a particular popularity owing to their product prices, which are more »
Low-end retailers like Family Dollar Stores (NYSE: FDO)(NYSE: FDO)(NYSE: FDO) are taking too many risks to be good investments. I recently argued that at least two of them have entered bubble territory because of over expansion.
Yet that doesn't necessarily mean I’m totally bearish on all discount retailers; there’s one I’m actually long on because it doesn’t take on the same risks as the others. Although more »
Discount retailers have been performing mostly in-line with the general market this year. PriceSmart (NASDAQ: PSMT), which is up 16% this year, is not an exception. The company has recently released its quarterly earnings. This gives us a chance to look more thoroughly at PriceSmart’s performance and evaluate whether it is a buy right now.
Currency issues and pricing strategy
PriceSmart has missed on both earnings and revenue. There more »
Low income households continue to be financially squeezed and have turned to discount retailers such as Family Dollar (NYSE: FDO) to provide cheap goods. Family Dollar recently posted earnings per share of $1.05, beating analyst estimates by $0.02. Sales also increased 9% to $2.6 billion during the quarter, but where does this growth come from and can Family Dollar continue its recent success?
During more »
With giants like Wal-Mart (NYSE: WMT), Tesco and Metro running over the small mom and pop stores, Family Dollar(NYSE: FDO) has done well to firmly establish itself as one of the fastest growing discount retail chains in the American landscape.
With the American economy in a rebuilding phase, consumer spending is still tight as people grapple with the after effects of the economic meltdown.
Nevertheless, the tide is passing more »
As a contributor on the Motley Fool blog network, I get quite an assortment of "colorful" comments. One of my favorites went something like this:
"You're a complete fool! Everybody knows that if Jim Cramer says to buy a stock, you buy it!"
This comment reflects a common investing strategy: choose an analyst and follow their recommendations every time. In so doing, you will win in the stock market more »
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