Family Dollar 3Q income up, raises outlook

MATTHEWS, N.C. Family Dollar Stores reported third quarter net income per diluted share increased 15% to 46 cents per compared with 40 cents in the third quarter of last year. Net income for the third quarter of fiscal 2008 increased 7.1% to $64.7 million, compared with $60.4 million for the third quarter of fiscal 2007.

As previously reported, net sales for the third quarter of fiscal 2008 were $1.7 billion, or 2.9% above sales of $1.65 billion for the third quarter of fiscal 2007. Sales in comparable stores increased 0.1%. An increase in the average customer transaction offset lower customer traffic, as measured by the number of register transactions.

Reflecting current assumptions for the fourth quarter, the company now expects that earnings per diluted share for fiscal 2008 will be between $1.58 and $1.63, compared with $1.62 per diluted share in fiscal 2007.