Matthews, N.C. Family Dollar Stores' fiscal fourth-quarter profit rose 23%, beating Wall Street estimates, and the company offered guidance that indicated it could top analysts' forecast for this fiscal year. The retailer plans to open about 300 new stores in fiscal 2011, 50% more than fiscal 2010, and to renovate 600 to 800 stores as well.
Family Dollar reported net income of $74 million for the period ended Aug. 28, up from $60.1 million a year earlier. Revenue grew 11% to $1.96 billion from $1.81 billion, meeting Wall Street's forecast. Same-store sales were up 6.1% on increased traffic.
For the year, Family Dollar's earnings increased 23% to $358.1 million, compared with $291.3 million in the previous year. Annual revenue improved to $7.87 billion from $7.4 billion.
The retailer also said it will buy back $750 million of its stock with available cash, cash from operations and possible debt financings.