Spending Slowdown Hurts Family Dollar 2Q

Matthews, N.C. Family Dollar Stores Inc. on Friday said fiscal second-quarter profit fell 30%, as consumers cut back on discretionary spending.

Profit for the quarter ended March 1 fell to $63.3 million from $90.5 million.

Revenue fell 6% to $1.83 billion from $1.95 billion last year. Analysts expected revenue of $1.84 billion.

The company said results were hurt as consumers cut back on discretionary spending, particularly during the holiday season.

Results were also hurt by one less week of holiday sales and one less week of sales compared with the year-ago quarter.

Same-store sales were flat during the quarter as an increase in average customer transaction offset lower traffic.