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MATTHEWS, N.C. - Discount retailer Family Dollar Stores Inc. on Tuesday posted record quarterly sales and earnings, thanks partly to an improved supply system that helped it avoid markdowns, Reuters reports. The company said it earned $81.4 million, or 47 cents per share, in the fiscal second quarter ended Feb. 28, up from $72.7 million, or 42 cents a share, a year earlier.
Matthews, N.C.-based Family Dollar, which operates 5,182 stores in 43 states, said sales at stores open for more than a year rose 2.2 percent. Sales were boosted by the company's rapid expansion in urban areas.
"The company is getting a payback from its investments in systems that is leading to lower level of mark downs," William Blair & Co. analyst Mark Miller told Reuters. Miller has an "outperform" rating on the stock.
New software systems have helped Family Dollar better allocate them seasonal items to different stores, Miller said.