Family Dollar Q3 profit jumps 19%

New York City Family Dollar Stores posted a higher quarterly profit, but forecast fourth-quarter earnings below expectations. For the third quarter ended May 29, the company earned $104.4 million, up from $87.7 million a year earlier.

Same-store sales rose 7% in the third quarter. Total sales rose 8.4% to $2.0 billion.

Chairman and CEO Howard R. Levine said the fourth quarter is off to a good start with same-store sales up about 5.5% in June. But he cautioned that "environment remains challenging for consumers, and customers continue to buy close to need."

Family Dollar has added a new checkout system that accepts more types of payments, including food stamps and gift cards, which has helped boost sales.