2. A Word of Caution
Certain statements contained in this presentation which are not historical facts are forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements address the Company’s plans, activities or events
which the Company expects will or may occur in the future.
A number of important factors could cause actual results to differ materially from those expressed
in any forward-looking statements. Such factors, risks and uncertainties are set forth under the
headings “Cautionary Statement Regarding Forward-Looking Statements,” or “Risk Factors” or
"Management’s Discussion and Analysis of Financial Condition and Results of Operation" in the
Company’s annual report on Form 10-K and quarterly reports on Form 10-Q filed or to be filed,
respectively, and which are expressly incorporated herein by reference.
You are cautioned not to place undue reliance on these forward-looking statements, which speak
only as of January 9, 2014. The Company does not undertake to update or revise its forwardlooking statements even if experience or future changes make it clear that projected results
expressed or implied in such statements will not be realized, except as may be required by law.
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3. Agenda
Introduction & Safe Harbor
Kiley Rawlins, CFA
Opening Remarks
Howard Levine
Financial Review and Outlook
Mary Winston
Closing Remarks
Howard Levine
Questions & Answers
Howard Levine
Mary Winston
VP – IR & Communications
Chairman & CEO
Chief Financial Officer
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5. Key Investments
•
•
•
•
Acceleration of new store openings
Chain-wide renovation program
Expansion of consumables categories
Margin-driving initiatives
– Global sourcing
– Private brands
5
8. Long Track Record of Success
• Focus on providing customers with great
values
• Ability and willingness to adapt to near-term
challenges while investing in the future
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13. Management Changes
• Jason Reiser promoted to Chief Merchandising Officer
– Joined Family Dollar in July 2013 as SVP, Merchandising
– Promoted in October 2013 to Lead Merchandising Officer
• President & COO Michael Bloom leaving Family Dollar
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20. First Quarter Earnings Results
(in millions except for per share
amounts)
1Q13
1Q14
Change
Net Income
$80.3
$78.0
-2.8%
Diluted Earnings per
Share
$0.69
$0.68
-1.4%
Weighted average
shares - diluted
116.2
115.1
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24. Outlook*
2Q14
Total Sales^
Low-single-digit growth
Comparable Store Sales
Low-single-digit decline
Gross Margin
Expansion
SG&A Expense
De-leverage
Diluted Earnings per Share
$0.85 - $0.95
*As provided in earnings press release dated January 9, 2014
^Excluding impact of the extra week in 2Q13
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25. Outlook*
FY14
Total Sales^
Comparable Store Sales
Low-to-mid-single-digit growth
Low-single-digit decline
Gross Margin
Flat
SG&A Expense
De-leverage
Tax Rate
36% - 36.5%
Diluted Earnings per Share
$3.25 – $3.55
Capital expenditures
$450M - $500M
Sale-leaseback transactions
$200M - $250M
Share repurchases
~$250M
*As provided in earnings press release dated January 9, 2014
^Excluding impact of the extra week in FY13
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