Family Dollar Stores Inc. said Wednesday that its fiscal third-quarter net income fell 3% as expenses rose. But the earnings topped analysts' estimates, and its shares climbed in premarket trading.Dollar stores have continued to see a steady stream of shoppers since the recession as consumers look for bargains on everyday goods and other items.
Chairman and CEO Howard Levine said in a statement that sales of consumable items like food did well during the quarter, but that sales of discretionary items continued to come under pressure as shoppers watched their spending.
The chain narrowed its full-year earnings forecast, raising the low-end of the range and cutting the high-end of the range.
For the period ended June 1, the discounter earned $120.9 million, or $1.05 per share, down from $124.5 million, or $1.06 per share, a year earlier.
Analysts polled by FactSet forecast earnings of $1.03 per share.
Selling, general and administrative expenses increased to $704 million from $652 million, while interest expense rose to $6.1 million from $5.6 million.
Revenue climbed 9% to $2.57 billion from $2.36 billion. That met Wall Street's expectations.
The company anticipates fiscal 2013 earnings between $3.77 and $3.82 per share. Previously, it predicted earnings in a range of $3.73 and $3.93 per share.
For the fourth quarter, the company anticipates earnings of 82 cents and 87 cents per share.
Analysts expect full-year earnings of $3.77 per share and fourth-quarter earnings of 85 cents per share.
