MATTHEWS, NC-A rise in sales of prepaid cell phones, decreased discounting and better inventory control helped boost first quarter earnings by nearly 6% at discount retailer Family Dollar Stores Inc., the company says.

The 6,200-store chain said it expects first quarter earnings to rise 5.8% to $54.4 million, or 36 cents per share, compared with last year’s first quarter when net income was $51.4 million, or 32 cents per share. Revenue for the quarter ended Nov. 25 was up by 6% to $1.6 billion from $1.51 billion the prior year.

The company says the quarterly results were preliminary due to an internal review of the firm’s stock option granting practices. The review is the result of a lawsuit filed against the firm, which alleges some of its stock option grants were backdated. Family Dollar said the first quarter results did not take into account any adjustments that may be needed once the review is complete.

The Matthews, NC discount retailer, which opened 87 new stores and closed eight during the quarter, said the quarterly results reflected improved inventory controls and better merchandising efforts that have helped increase customer spending while cutting back on inventory expenses.

Despite a slight drop in customer traffic, sales at stores open at least a year grew 0.9% in the quarter due largely to an increase in customer spending, the company said. Director James Martin said in a conference call with analysts that last year’s hurricanes negatively affected comparative store performance by about 1%.

Family Dollar said it expects earnings of between 58 cents and 64 cents for the second quarter, which ends March 3, and a rise in net sales of between 12% and 14%. Full-year earnings are projected to be between $1.57 to $1.69 per share.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.