Discount retailer Family Dollar Stores Inc, under pressure from activist investor Carl Icahn to sell itself, said its profit fell by a third as the company cleared inventory ahead of store closures and competition intensified.Shares of Family Dollar, which reported its third straight quarterly decline in same-store sales, fell nearly 1 percent in premarket trading.The struggling retailer also tweaked its full-year earnings forecast for the third time. The company said it now expects earnings of $3.07-$3.17 per share, compared to its previous forecast of $3.05-$3.25. The latest forecast excludes about 51 cents per share in restructuring charges.Icahn, who became Family Dollar's largest shareholder last month, had said he would push the company to sell itself to rival Dollar General Corp to help them cope with intensifying competition.
Dollar General Corporation is a discount retailer in the United States by number of stores, with 9,961 stores located in 39 states as of March 2, 2012, primarily in the southern, southwestern, midwestern and eastern United States. Shares of DG traded higher by 0.3% or $0.17/share to $57.53. In the past year, the shares have traded as low as $52.40 and as high as $65.99. On average, 4966870 shares of DG exchange hands on a given day and today's volume is recorded at 6225695.
Family Dollar Stores, Inc. (Family Dollar) operates a chain of more than 7,900 general merchandise retail discount stores in 46 states, providing consumers with a selection of merchandise in neighborhood stores. Shares of FDO fell by 0.22% or $-0.14/share to $64.24. In the past year, the shares have traded as low as $55.64 and as high as $75.29. On average, 1803490 shares of FDO exchange hands on a given day and today's volume is recorded at 1720142.
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