US discount retailer Family Dollar Stores booked "record" third-quarter sales and profits.The company reported a 6.5% increase in net income to $111.1 million for the three months to May 28. Operating profit was up 8.4% at $170.1 million.
The rise in profits came as Family Dollar reported a 7.8% rise in net sales for the quarter to $2.15 billion. Comparable-store sales were up 4.7% on increased customer traffic and a rise in the average value of a transaction.
However, the retailer's gross margin as a percentage of sales dipped from 36.6% in last year's third quarter to 36.2% this year. Family Dollar pointed to "stronger" sales of lower-margin consumables, increased promotions and higher freight costs.
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