Family Dollar 1Q income up 4.1%

MATTHEWS, N.C. Family Dollar Stores today reported that net income per diluted share for the first quarter of fiscal 2008 ended Dec. 1, 2007 increased 2.8% to 37 cents compared with 36 cents for the first quarter of fiscal 2007 ended Nov. 25, 2006. Net income for the quarter decreased 4.1% to $51.9 million compared with net income of $54.1 million for the first quarter of fiscal 2007.

According to Howard Levine, chairman and ceo of Family Dollar, essential consumable categories performed well, reflecting more restrained consumer spending. As a result of this trend, Levine said the company will strengthen its assortments in important consumable categories.

Sales for the first quarter of fiscal 2008 were approximately $1.7 billion, or 5.2% above sales of approximately $1.6 billion for the first quarter of fiscal 2007. Comparable-store sales decreased approximately 1% in the first quarter of fiscal 2008.

For the 52-week fiscal year ending Aug. 30, 2008, the company expects total sales to increase 2% to 3% compared with the 53-week fiscal year ended Sept. 1. For the full year, the company expects that comparable-store sales will be flat or increase slightly and expects gross margin will be pressured by a higher sales mix of lower-margin consumables.For the full year, the company expects that earnings per diluted share will be between $1.56 and $1.64.