Family Dollar profit up 14% in Q1

Matthews, N.C. Family Dollar Stores said Wednesday fiscal first-quarter profit rose 14% as consumers continued to hunt for bargains, and said it expects investments in the business to boost sales growth in the second half of the year.

Profit for the three months ended Nov. 28 rose to $67.6 million from $59.3 million last year. Its results beat analysts’ estimates. Revenue increased 4% to $1.82 billion, from $1.75 billion last year. Same-store sales rose 4% during December.

“We have increased our relevancy across our diverse customer base and are positioned to accelerate top-line growth,” said Howard R. Levine, chairman and CEO. “I am confident that our efforts to broaden the appeal of our assortment, strengthen our customer communications and improve the in-store shopping experience will result in continued market share growth and strong financial returns.”

The discounter said investments it is making to boost revenue growth should boost sales at stores open at least one year by 3% to 5% in the second half of fiscal 2010.

The chain, which operates 6,600 stores in the United States, said it opened 43 new locations and closed 33 stores during the first quarter.