Family Dollar sees 2Q earnings rise

MATTHEWS, N.C. Family Dollar Stores today reported that net income per diluted share for the fourth quarter ended Sept. 1, increased 23.8% to 26 cents compared with 21 cents for the same period last year.

Sales for the fourth quarter were approximately $1.63 billion, the company reported, a 3.4% increase over sales of approximately $1.58 billion last year. According to the company, the sales increase was mainly driven by the sales of food and certain seasonal categories, primarily toys. The company said that comparable-store sales increased by about 1%.

"Despite a challenging economic environment, our team has delivered a solid performance this year. The commitment and hard-work of all our dedicated Associates has resulted in improvements in many of our key financial metrics, including earnings per share, return on shareholders' equity, inventory productivity and associate retention," said Howard Levine, chairman and ceo of Family Dollar.

For the fiscal year ending Aug. 30, 2008, Family Dollar said it expects total sales to increase 4% to 6% compared with the same period last year. Comparable-store sales are expected to rise by 1% to 3%. Earnings per share are anticipated to be between $1.74 and $1.85.