UPDATE 1-Family Dollar: Longer hours by month's end

* Sees expanded store hours across chain by end of month

* Expanded store hours accretive to earnings

* Shares down less than 1 pct

SAN FRANCISCO, Feb 10 (Reuters) - Family Dollar Stores Inc (FDO.N) said on Wednesday that it expects to roll out expanded hours to substantially all of its 6,600 stores by the end of the month, a move the company says will help boost earnings.

The retailer's chief financial officer, Kenneth Smith, made the comment at a Deutsche Bank conference, which was broadcast over the Internet.

When Family Dollar reported quarterly results in January, it said it had tested expanded hours in 15 percent of its stores. Based on the response from customers, Family Dollar, which sells most of its merchandise for $10 and below, said it would roll out longer hours across the chain.

Smith said the expanded hours add to earnings, and make it more convenient for consumers to shop in its stores.

Smith also said the retailer is focused on increasing its sales of private label products, which appeal to its core shoppers who typically have household incomes of $40,000 or below and are looking to stretch limited budgets.

About 19 percent of Family Dollar's total sales come from private label products, but Smith said the retailer sees the opportunity to boost that figure to 25 percent.

Family Dollar's sales have risen amid the economic downturn as consumers' focus on value intensifies. But investors have questioned whether the retailer can maintain that momentum when times improve and shoppers have a few extra dollars to spend.

Smith said the retailer is well positioned for either scenario, with sales of its discretionary merchandise expected to improve if the economy does.

"As we study our business coming out of recession, if history is any indicator, we do very well and actually the business grows coming out of recessionary periods," he said.

Family Dollar's shares declined 9 cents to $31.50 in early afternoon trading. (Reporting by Nicole Maestri))