Family Dollar Q1 Earnings Up

MATTHEWS, NC-A rise in sales of prepaid cell phones, decreased discounting and better inventory control helped boost first quarter earnings by nearly 6% at discount retailer Family Dollar Stores Inc., the company says.

The 6,200-store chain said it expects first quarter earnings to rise 5.8% to $54.4 million, or 36 cents per share, compared with last year’s first quarter when net income was $51.4 million, or 32 cents per share. Revenue for the quarter ended Nov. 25 was up by 6% to $1.6 billion from $1.51 billion the prior year.

The company says the quarterly results were preliminary due to an internal review of the firm’s stock option granting practices. The review is the result of a lawsuit filed against the firm, which alleges some of its stock option grants were backdated. Family Dollar said the first quarter results did not take into account any adjustments that may be needed once the review is complete.