Family Dollar 1Q Earnings Up 13.5%

Matthews, N.C. Family Dollar Stores Inc. said Wednesday its fiscal first-quarter earnings jumped 13.5%, beating Wall Street's expectations, as bargain-hunting customers increasingly turned to the discount retailer for food and other necessities.

Earnings for the quarter ended Nov. 29 rose to $59.3 million, from $51.9 million for the quarter ended Dec. 1, 2007.

Quarterly sales rose 4.25 to $1.75 billion, from $1.68 billion in the prior year. Same-store sales rose 2.1% on greater customer traffic and average-transaction value.

The company said sales were strongest in the consumables category, driven mostly by food purchases. Family Dollar forecast second-quarter profit above Wall Street's expectations, and anticipates a same-store sales increase of 3% to 5% during the quarter.