MATTHEWS, N.C. — Family Dollar Stores on Thursday announced that president and COO Michael Bloom has left the company to pursue other interests. The company will conduct a search for a new president and COO. The news comes amid disappointing first quarter results for the company, which lowered its earnings expectations for the second quarter and full year. Family Dollar also announced it has promoted Jason Reiser to the position of executive VP - chief merchandising officer.
Family Dollar's sales rose 3%, to $2.5 billion, in the three months ended Nov. 30, the first quarter of the company's fiscal year. But profits fell 3%, to $78 million, hurt by higher payroll and store occupancy costs, and same-store sales fell 2.8%. Family Dollar said it saw fewer customer transactions and a drop in the average transaction size.
“While we have made meaningful progress to improve our execution, our financial performance has not met our expectations,” said Levine in a statement. “We have a great business model and ample growth opportunity, and I know we can do better.”
During a conference call with investors and analysts, Levin said he and Bloom were not in agreement on merchandising strategies, and that while it was “not at all pleasant” to let Bloom go, it was the right choice, the Charlotte Observer reported.
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