Family Dollar announced earnings Thursday, beating analysts' estimates. The discount retailer's net income increased to $37.8 million ($0.26/share), compared to $32.3 million ($0.21/share) last year. Analysts polled by Reuters were expecting $0.25/share. Sales increased 3%, from $1.578 billion a year ago to $1.632 billion. Family Dollar said it is trying to increase sales by resetting merchandise displays and adding more food items. It is also installing coolers in its stores so it can sell perishable items like milk. "The continued investment in our business in fiscal 2008 even as the economic environment remains challenging, reflects our longer-term perspective and will make Family Dollar a more compelling place to shop, work and invest," CEO Howard R. Levine said. Family Dollar said it sees its full-year earnings coming in between $1.74 - $1.85. Analysts forecasted earnings of $1.81/share. In pre-market trading Thursday, shares of Family Dollar were up 3.0% to $28.25.
Sources: Press Release, Reuters
Commentary: Family Dollar Stores: Highly Overvalued Dividend Aristocrat • August Same-Store Sales Roundup
Stocks/ETFs to watch: FDO. Competitors: WMT, COST. ETFs: RTH, KXI
Earnings call transcript: Family Dollar Stores F3Q07
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