MATTHEWS, N.C. (AP) — Family Dollar Stores Inc. said Thursday that its fiscal third-quarter profit rose 12 percent, as more people headed to its discount stores in search of bargains and spent more money on their purchases.
But its results were slightly below Wall Street expectations, and its shares fell almost 4 percent in afternoon trading.
For the quarter ended May 26, the Matthews, N.C.-based company earned $124.5 million, or $1.06 per share, up from $111.1 million, or 91 cents per share, in the same quarter last year.
Sales rose 9.6 percent to $2.36 billion from $2.15 billion.
Analysts, on average, expected higher earnings of $1.07 per share on $2.37 billion in revenue, according to a FactSet poll.
Family Dollar said its sales at stores open at least a year rose 5 percent in an increase in customer traffic and an increase in the average sale value. The metric is a key measure of a retailer's health, because it excludes sales at stores that opened or closed during the year.
The top-selling product categories included seasonal and electronics, along with consumables, the company said.
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