How Good Is The Economy?

Family Dollar reports on its conference call:

QTR DISCRETIONARY SALES SLOWED MORE THAN EXPECTED
NEAR TERM CHALLENGES IN DISCRETIONARY ITEMS
2Q GROSS MARGIN PRESSURE MORE VS 1Q
1H13 MORE CHALLENGING THAN EXPECTED
QTR AVG DISCRETIONARY INVENTORY PER STORE DOWN
BUSINESS CLIMATE REMAINS UNCERTAIN

and from its earnings release:

“The holiday selling season proved to be more challenging than we expected as customers faced increasing financial uncertainty. Comparable stores sales for December increased about 2.5%, driven primarily by strong, double-digit sales of Consumables.”

Business is good at the dollar store. But people are buying only staples. You figure it out.

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