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Growing Family Dollar posts record 3Q results

Even in this slow economy, Family Dollar had its highest sales and earnings for any third quarter and first three quarters for the quarter ended June 2.

Discussing its results in a conference call here last week, the company attributed the sales gains to increased sales in existing stores and sales in new stores opened as part of the company's expansion program.

Sales increased 15.1 percent, to more than $887 million, and net income rose 6.9 percent, to more than $53.5 million.

The company also completed its space reallocation plan, giving more room to hardline goods such as consumables and less to softlines. Hardlines made up 73.7 percent of merchandise, and increased 8.5 percent, while softlines, which includes domestics, was down 10.2 percent. Domestics were responsible for 7 percent of sales in the quarter, a decrease of 0.3 percent from last year's third quarter.

In addition, George Mahoney, executive vp, said, inventories on a same-store basis rose only 1.9 percent by the end of the third quarter.

The company also announced its expansion plans for the next fiscal year, beginning Sept. 2, when the company plans to open about 525 new stores and close 50. It's currently on target to open about 500 new stores and close 50 stores this current year.

A sixth distribution center, of 970,000 square feet, is under construction in Maquoketa, IA, and will begin shipping goods spring 2002.

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