MATTHEWS, N.C.—Net income for Family Dollar increased 9.9 percent to $74.3 million in its fiscal first quarter, which ended on Nov. 27.
The discount retailer benefited from a 9.5 percent jump in net sales in the quarter, which totaled $2 billion and which included a 6.9 percent increase in same-store sales. Howard Levine, chairman and chief executive officer, said the comparable-store rise was the best in a fiscal first quarter in 12 years. In addition, although selling, general and administrative expenses gained 9 percent in dollars, they dropped 15 basis points as a percentage of sales to 29.9 percent.
Increases in sales of lower-margin products and freight expense slimmed Family Dollar’s gross margin by eight basis points to 36 percent.
Family Dollar also said it expects net sales for all of fiscal 2011 to rise between eight and 10 percent, and it plans about 300 new store openings along with 80 to 100 store closings.