Family Dollar Stores Inc. Posts Q4 Miss; Mostly Mum On Merger

Family Dollar Stores, Inc.

missed fourth-quarter expectations Thursday and cited "a difficult competitive environment" for flat same-store sales. The Mathews, N.C. discounter is set to be acquired for $74.50 a share by competitor Dollar Tree Inc.

. But Dollar General Corp.

is waging a proxy battle and hopes shareholders will favor its separate $80 a share bid at a yet-to-be scheduled annual meeting. Family Dollar said the recent period included costs of $55.2 million, or $0.43 cents a share, related to its pending merger with Dollar Tree, but otherwise didn't mention the merger battle in its earnings release. Chief Executive Howard R. Levine said fourth quarter results "continue to reflect the difficult competitive environment, as well as the financial challenges facing our customers." But Levine added that the company continues with previously announced restructuring plans "to improve our performance." Net income for the quarter ended Aug. 30 plunged to $34.5 million, or $0.30 cents a share, from 102.2 million, or $0.88 cents a share a year earlier. Sales grew to $2.61 billion, from $2.5 billion last year. Adjusted income was $0.73 cents a share. Wall Street expected adjusted earnings of $0.77 cents a share on sales of $2.58 billion. In the extended session Thursday Family Dollar changed hands recently at $7.25 a share, dow 0.6 percent.