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Family Dollar 1Q: sales, comps up; profits down

MATTHEWS, N.C. — Even though sales climbed at a double-digit pace, first quarter profits dropped by more than five percent at Family Dollar Stores, hit by rising costs and higher interest expense tied to store upgrades.

Profits fell by 5.6 percent, to $51.4 million from $54.4 million for the period, hit by the cost of installing refrigerated coolers, adding new stores and new merchandising programs. Operating costs climbed by 90 basis points, or nine-tenths of a percentage point, to 28.1 percent of sales from 27.2 percent a year ago.

Helped by new store openings, sales improved by 9.5 percent, to $1.5 billion from $1.4 billion. Same-store sales rose by 3.0 percent.

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