Jan 3 Family Dollar Stores Inc posted a
lower-than-expected quarterly profit on Thursday as its emphasis
on selling more everyday items like cigarettes and soft drinks
put pressure on margins.
The company also said that December sales, which came in
after the quarter ended, were hurt as people cut back on
The discount chain added cigarettes and other tobacco
products, Pepsi drinks, gift cards, magazines and some other
goods to its assortment in recent months in an attempt to better
compete against chains such as Dollar General Corp.
Its profit was $80.3 million, or 69 cents a share, in the
fiscal first-quarter that ended Nov. 24, compared with a profit
of $80.4 percent, or 68 cents, a year earlier.
Analysts on average forecast 75 cents a share, according to
Thomson Reuters I/B/E/S.