Family Dollar 3Q earnings up

MATTHEWS, N.C. Family Dollar Stores today reported net income of $60.4 million for the third quarter of fiscal 2007 ended June 2, compared with $56.9 million for the third quarter of fiscal 2006 ended May 27. Net income per diluted share in the third quarter of fiscal 2007 increased 8.1% to 40 cents compared with 37 cents per diluted share in the third quarter of fiscal 2006.

As previously reported, sales for the third quarter of fiscal 2007 were approximately $1.65 billion, or 5.4% above sales of approximately $1.57 billion for the third quarter of fiscal 2006. Sales in comparable-stores (for the comparable 13-week period in both years) increased approximately 1.5%. The increase in comparable-store sales was a result of an increase in the average customer transaction amount, which offset a slight decline in customer traffic, as measured by the number of register transactions.

Reflecting trends month-to-date, the company continues to expect that comparable-store sales for the June period will increase 1% to 3%. For the fourth quarter of fiscal 2007 ending September 1, the company expects net sales to increase 5% to 7% and expects comparable-store sales for the comparable retail reporting period to increase 1% to 3%.

Based on reported results for the first three quarters of fiscal 2007 and the company's expectations for the fourth quarter, the company now expects comparable store sales will increase 1% to 2% for the full year and expects that earnings per share for fiscal 2007 will be between $1.62 and $1.65.