UPDATE: Family Dollar Posts Lower FQ3 Profit

Family Dollar

reported a drop in its fiscal third-quarter profit. Family Dollar's quarterly net earnings fell to $81.1 million, or $0.71 per share, versus $120.9 million, or $1.05 per share in the year-ago quarter. Excluding one-time items, it earned $0.85 per share. Its revenue increased 3.3% to $2.66 billion. However, analysts were expecting earnings of $0.89 per share on revenue of $2.62 billion. Family Dollar's comparable store sales dropped 1.8% for the 13-week period. Operating profit came in at $120.8 million in the quarter. The company opened 111 new stores and closed 3 stores during the third quarter. As of May 31, 2014, Family Dollar's merchandise inventories were $1.59 billion, up from $1.47 billion as of June 1, 2013. The company's press release offered the following comment from Howard R. Levine, Chairman and CEO: “Our results continue to reflect the economic challenges facing our core customer and an intense competitive environment.” Family Dollar projects FQ4 adjusted earnings of $0.75 to $0.85 per share, versus analysts' estimates of $0.78 per share. It also narrowed FY14 earnings forecast from $3.05 - $3.25 per share, to $3.07 - $3.17 per share. Family Dollar shares fell 0.45% to $63.95 in pre-market trading.