Some analysts defend Family Dollar (FDO -7.5%) after the discount retailer's FQ1 gross margins...

|About: Family Dollar Stores Inc. (FDO)|By:, SA News Editor

Some analysts defend Family Dollar (FDO -7.5%) after the discount retailer's FQ1 gross margins dwindled. Citi says FDO can "more than offset the deterioration through better SG&A leverage," and points to "the closing of its performance gap vs. Dollar General (DG) in both sales per square foot and EBIT margin."