Family Dollar Shares Are Getting Crushed After Missing Earnings Expectations

family dollar store

Family Dollar shares are down more than seven per cent after the company missed earnings estimates by a penny.

The retailer reported third quarter profits of $1.06 per share on net sales of $2.36 billion.

Same-store sales improved 0.5 per cent during the period.

“We began to implement a number of initiatives to broaden our consumable assortment and satisfy more of our customers’ shopping trips,” Family Dollar CEO Howard Levine said. “Most of these initiatives began late in the quarter and had little impact on our third quarter sales results.”

The company expects fourth-quarter earnings between $0.71 and $0.81 per share compared to estimates for $0.77 per share. 

Family Dollar margins were hampered during the quarter, with gross margins declining 40 basis points to 35.8 per cent in the quarter.

SEE ALSO: Don’t Miss The 20 Best Stocks In The World According to Barclays >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.