MORE SIGNS OF ECONOMIC RECOVERY: DOLLAR STORES COLLAPSING

Family Dollar stores have been a Wall Street darling for over a decade. Its stock rose from $5 in the late 1990s to $77 in the last year. It has sales of over $10 billion and operates 8,100 stores in 46 states and employs over 34,000 full time employees. It is the canary in the coal mine for lower income and middle income families in this country. Based on their latest earnings report, the canary has a terminal disease. During the quarter where they do there biggest business, they saw their revenue plunge by $170 million, with same store sales down 3.8%. Their profit COLLAPSED by 35% over the prior year. Their results were a fucking disaster. They are so optimistic about the future that they have decided to close 370 stores. That’s a sure sign of economic recovery. Right?

While the stock market soars to new heights through the magic of HFT front running by the Wall Street shysters, the real people in the real world have run out of money to spend at dollar stores. I guess the new hot retailer will be the Family Dime Store. Oh yeah. We had those back in the 1960s and 1970s before the Federal Reserve destroyed another 80% of our purchasing power with that non-existent inflation.

Observe what is happening. Don’t listen to what they are saying.

Does this chart explain anything?

Family Dollar shares fall after earnings miss

NEW YORK (MarketWatch) – Family Dollar Stores Inc. (NYSE:FDO) reported its fiscal second-quarter profit fell to $90.9 million, or 80 cents a share, from $140.1 million, or $1.21 a share, a year earlier. Revenue fell to $2.72 billion, from $2.89 billion a year earlier, the discount retailer said Thursday. Analysts had expected earnings of 90 cents a share on revenue of $2.77 billion, according to FactSet. Same-store sales were down 3.8% last quarter. “Our second quarter results did not meet our expectations,” said Chairman and CEO Howard Levine, noting that the holiday season proved particularly challenging. Family Dollar said it is closing about 370 under-performing stores. The retailer expects a per-share earnings range for the current quarter of $0.85 to $0.95, which excludes restructuring charges. For the full year, the firm expects an earnings per share range of $3.05 to $3.25. Shares in Family Dollar were down 1.8% in premarket trading.

23
Leave a Reply

avatar
  Subscribe  
Notify of
Iska Waran
Iska Waran

No, admin. This is a sure sign of a recovering economy. Dollar Store thrives as the economy tanks. Dollar Store tanking means the economy’s thriving. Dollar Store customers are now shopping at Target, Target customers have switched to Macy’s, and Macy’s customers are flocking to Nordstrom.
So says Jim Cramer.

Iska Waran
Iska Waran

I was just telling some people that if Dollar Store started a clothing line, I’d be all over it.

Persnickety
Persnickety

Don’t worry, HEDONIC ADJUSTMENT!!!

You may be wearing rags and eating lawn grass, but that means your standard of living is UP because of the HEDONIC ADJUSTMENT (YAY!) from switching over to renewable, sustainable, eco-friendly clothing and organic, low-fat, natural food.

Stucky

$10 billion revenue — and 34,000 employees

That’s $294,000 per employee. It’s a cheap-shit store …. how can you not make money at $294k per employee?

They have 8,100 stores. That’s 4 employees per store …. or $1,176,000 revenue per store. They don’t pay their employees shit, and their stores look like shit and often in shitty locations, so the rent can’t be that high. Regarding inventory they buy shit for pennies on the dollar. They can’t have that many other high operating costs.

They are closing some stores, but their website shows they still plan on opening about 300+ more next year. They also plan on lowering prices on 1,000 items. That makes no sense.

Soooo, I guess I just don’t understand how in the fuck this company is not making money.

And then I found this. A statement from their CEO. He knows the reason. Can YOU guess? Well,

… can you?

… can you try?

… c’mon, give it a shot

…. hey, don’t be a pussy

…. ok, here it is

… wait, you will love this

“Chairman and CEO Howard Levine said in a statement that the poor weather led to numerous store closings, disrupted merchandise deliveries and higher-than-expected utility and store maintenance expenses.”

bwaaahahahahaha

Thinker

I could show you surveys that show lower-income people are even choosing to shower less often (2-3 times a week instead of daily) because of the cost for water, shampoo, soap, etc.

Is anyone else drawing a conclusion that we may well be headed for a French / Bolshevik revolution, rather than anything else? The disparities between rich and poor, the overreach of government, the increasing belief of the citizens that everything needs to be shared, equal, no personal ownership of anything, no privacy…

It all leads to those of us with businesses or land losing them to “communal” ownership, if not being slaughtered for being seen as part of the problem. It’s quite possibly the worst scenario any of us can imagine, yet it has happened throughout history when economic systems become this polarized.

Persnickety
Persnickety

Thinker – yeah, similar thoughts here. It all depends how long the free shit keeps flowing, and the manner and speed in which it stops.

That puts us TBP types in a pickle. No way I’m signing up with the FSA communist/socialist/”gimme gimme” mentality. But no reason I would want to sign up with the “God’s work” bankster scum either. We should all be planning a separate and better path.

TeresaE
TeresaE

Thinker, yep, which is why the laws have been put in place.

The French Revolution could have never taken place if Louis and Marie would have had access to the plans to rise up.

If the peasants were sending their text messages about meeting places using Louiephones, then the jackboots would break it up and arrest them before they could collaborate with others.

How’s this for a horrible scenario? EBT or communications/entertainment/utilities go down. FSA rises up enraged, scared, and first goes after their own thus forcing a response from the jackboots. Millions are slaughtered.

Do I mourn the police state that allowed this to occur, or praise this instance because it would mean a few million fewer trying to kill me and take my stuff? Thinking about that hurts my head, and my heart.

Nonanonymous

That could be FTE’s, and Stucky, that should have been….

BWAHAHAHAHAHHAHAHAHA

It would be funny if it didn’t suck so bad. Maybe they need to add a Gucci kiosk.

Stucky

“They have 34,000 full time employees. They probably have twice as many part-time employees.”
———- Admin

True. But, they most likely earn minimum wage and get minimal, or zero, bennies.

I’ll drop it as I don’t want to beat dead horse. But, I just don’t get it, how this company is fucking up. I suspect a big part of the problem is Management …. as evident by the hilarious fact that their CEO is blaming the fucking weather.

AWD

Pretty hilarious. If dollar stores are doing poorly, that spells the end of spending for the consumer. They had to quit the gilded palace of Wal Mart to save money, and turned to the dollar store. Now they can’t even afford the dollar store. There’s always dollar tree, were everything in the store actually costs one dollar. That’s the only place I can afford to shop. The IRS has the rest of my money.

AWD

It’s just a matter of time before the Chinese buy this company. 99.9% of the crap they sell is made in China.

Econman
Econman

16,000 families own all the wealth?

That’s a lot of nooses & guillotines! Viva La Revolution.

What cracks me up is some diehard blowhards think that’s because they earned it all, not because the fuckers gamed the system through the Federal Reserve & monopolizing creation of money. They gamed the system, shit they created & own the system.

In a real free market economy, no 1 could possibly, mathematically do that unless they cured every disease, patented all the cures, then created a world peace machine. Then patented that too.

AWD

NASDAQ down 3% today, S&P down 2%, that’s gonna leave a mark

Margin calls anyone?

The CNBC Talking Head Guide

comment image

Bob
Bob

Sooooo……….short rice paper shorts (and socks and shirts and pants and………….)?

AWD

2014 crash will be worse than 1987’s: Marc Faber

Alex Rosenberg Thursday, 10 Apr 2014

Marc Faber says the stock market is setting up for a decline more painful than the sudden crash of 1987.

“I think it’s very likely that we’re seeing, in the next 12 months, an ’87-type of crash,” Faber said with a devious chuckle on Thursday’s episode of “Futures Now.” “And I suspect it will be even worse.”

Faber, the editor and publisher of the Gloom, Boom & Doom Report, has recently called for growth stocks to decline. And he says the pain in the Internet and biotech sectors is just getting started.

“I think there are some groups of stocks that are highly vulnerable because they’re in cuckoo land in terms of valuations,” Faber said. “They have no earnings. They’re valued at price-to-sales. And this is not a good metric in the long run.”

To be sure, there are prominent investors that disagree with Faber, among them legendary stockpicker Bill Miller, who said this week that conditions for a bad market simply don’t exist.

But it’s not just momentum stocks that Faber is wary of. He says that investors are coming to a stark realization.

“I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organization,” Faber said. “They have no idea what they’re doing. And so the confidence level of investors is diminishing, in my view.”

BUCKHED
BUCKHED

What’s the one thing you never hear at a Dollar Store….”Price Check On Aisle 5 ” !

Dollar Stores….shitty Chinese stuff made to taste like shit, function like shit or break fast as shit !

TeresaE
TeresaE

@Buckhed, spoken like somebody that hasn’t really shopped there.

Yes, most of the “food” (snack items, canned goods, dry goods) are directly from China, I won’t eat, nor buy that stuff. Of course so is nearly ALL Wally World’s branded items. Out of the 20 different calls I made there was not ONE WalMart food item that was not made in Asia. Including canned American pears. We grow them, then ship them to China for processing.

But, a lot of the small plastic toys, office supply, some basket stuff, some cleaning products are actually Made in America. There is a greater percentage of American vs. Foreign at the dollar store than Wally World.

With these results at the dollar stores I now look for the Made in America to fall, after all, it worked really well for Wally to offshore 95% of their items.

Is there ANYthing positive jobs in this country? Ok, anything other than bureaucrat or jack boot?

BUCKHED
BUCKHED

TeresaE…shopped there…it was shitty stuff…..I forgot one thing….clerks with a minimum wage glaze in their eyes and…..shitty attitudes !

AWD

Our work force is second to, well, everybody…..

comment image

KaD
KaD

40 Central Banks Are Betting This Will Be The Next Reserve Currency: http://www.blacklistednews.com/40_Central_Banks_Are_Betting_This_Will_Be_The_Next_Reserve_Currency/34358/0/38/38/Y/M.html

As we have discussed numerous times, nothing lasts forever – especially reserve currencies – no matter how much one hopes that the status-quo remains so, in the end the exuberant previlege is extorted just one too many times. Headline after headlines shows nations declaring ‘interest’ or direct discussions in diversifying away from the US dollar… and as SCMP reports, Standard Chartered notes that at least 40 central banks have invested in the Yuan and several more are preparing to do so.

Discover more from The Burning Platform

Subscribe now to keep reading and get access to the full archive.

Continue reading