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FAMILY DOLLAR REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1992 AND FOR THE FOURTH QUARTER; APPROXIMATELY 150 STORES TO BE ADDED IN FISCAL 1993

FAMILY DOLLAR REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1992 AND FOR THE FOURTH QUARTER; APPROXIMATELY 150 STORES TO BE ADDED IN FISCAL 1993
 MATTHEWS, N. C., Oct. 15 /PRNewswire/ -- Family Dollar Stores, Inc. (NYSE: FDO), a discount store chain operating 1,899 stores in a 31-state area ranging as far northwest as Wisconsin, northeast to Massachusetts, southeast to Florida and southwest to Texas, reported that sales and earnings for the fiscal year ended August 31, 1992, and for the fourth quarter of fiscal 1992, were the highest in the Company's history.
 Sales for the fiscal year ended August 31, 1992, were $1,158,703,861, or 17 percent above sales of $989,345,265 for fiscal 1991. Net income for fiscal 1992 was $55,671,936, or 38 percent above net income of $40,241,858 a year ago, and earnings per share, adjusted to reflect the two-for-one stock split effective February 10, 1992, increased to $1.00 from $.72. For the fourth quarter ended August 31, 1992, sales were $297,190,492, or 15.5 percent above sales of $257,289,803 for the fourth quarter of fiscal 1991. Net income was $10,936,584, or 32.5 percent above net income of $8,252,849 for the comparable quarter of the prior year, and earnings per share, adjusted to reflect the two-for-one stock split effective February 10, 1992, increased to $.20 from $.14.
 In commenting on the record operating results, Leon Levine, Chairman of the Company, stated that: "Fiscal 1992 was a year of outstanding achievements and milestones for Family Dollar. Our Company exceeded the $1 billion mark in annual sales for the first time and recorded the highest earnings in its 33-year history. These results reflect the success of the Company's efforts to increase sales and improve gross profit margins at the same time. The key to the Company's performance was a 10.3 percent increase in sales in existing stores for the year, including a 7.2 percent gain in the fourth quarter. The increase was particularly satisfying as it followed existing store sales increases of 7.5 percent in fiscal 1991 and 7.7 percent in fiscal 1990. Sales from new stores also contributed significantly to the total sales gain as the Company opened 160 stores and closed 34 stores for a net addition of 126 stores in fiscal 1992.
 "The continued improvement in the gross profit margin, coupled with the strong sales performance, produced the 38 percent increase in net income in fiscal 1992. The gross profit margin was favorably impacted by some of the same merchandising programs that contributed to the sales gain. Adjustments continued to be made to the merchandise mix to emphasize sales in higher margin departments, particularly apparel and other softline categories. Assortments of merchandise in these categories have been improved and expanded, and the merchandise is more attractively displayed. Opportunistic purchases of merchandise from suppliers at closeout prices, consumer acceptance of the Family Dollar private label program, and multi-zone pricing in which different prices are used in selected locations based on competition and other market factors, also continue to be key elements of the merchandising strategy that have contributed to the gross profit margin improvement."
 Mr. Levine noted that: "Family Dollar's excellent financial condition grew even stronger in fiscal 1992. The Company continued its aggressive store expansion program and made other major investments in the business, including the installation of a point-of-sale register information system with scanners in more than 1,300 stores, all without incurring any long-term debt. There also was no short-term debt outstanding at any time during the year. The cash dividends declared per share of Common Stock increased 16 percent, and fiscal 1992 also was highlighted by the declaration of a two-for-one stock split that was effective in February 1992."
 Mr. Levine concluded that: "The outstanding operating results in fiscal 1992 again demonstrate that Family Dollar's proven merchandising concept has great appeal to today's value-conscious consumer, and that our Company has great opportunities for continued profitable growth."
 Mr. Peter J. Hayes, President of the Company, stated that the Company was pleased that sales in fiscal 1993 had started strongly. As reported last week, sales in existing stores in September 1992, aided by a late Labor Day, increased 15.5 percent above existing store sales in September 1991, and total sales increased 24.5 percent.
 Mr. Hayes also announced that Family Dollar currently plans to open approximately 175 stores and close up to 25 stores during fiscal 1993, for a net addition of 150 stores. Since the beginning of the fiscal year on September 1, 1992, 14 new stores have opened, to bring the number of stores in operation to 1,899. The Company expects to have approximately 2,035 stores operating by the end of the fiscal year on August 31, 1993. By such time, the Company also expects to have in operation a 540,000 square foot distribution center to be constructed in West Memphis, Arkansas, at an estimated cost of $25 million.
 The figures are as follows:
 Three Months Ended
 August 31, 1992 August 31, 1991
 Net Sales $ 297,190,492 $257,289,803
 Income Before Income Taxes 17,689,054 12,576,880
 Income Taxes 6,752,470 4,324,031
 Net Income 10,936,584 8,252,849
 Net Income Per Common Share (A) $.20 $.14
 Dividends Declared
 Per Common Share (A) $.065 $.055
 Weighted Average
 Number of Shares (A) 56,028,207 55,730,404
 Fiscal Years Ended
 August 31, 1992 August 31, 1991
 Net Sales $1,158,703,861 $989,345,265
 Income Before Income Taxes 88,939,306 63,725,889
 Income Taxes 33,267,370 23,484,031
 Net Income 55,671,936 40,241,858
 Net Income Per Common Share (A) $1.00 $.72
 Dividends Declared
 Per Common Share (A) $.25 $.215
 Weighted Average
 Number of Shares (A) 55,910,901 55,585,344
 (A) Adjusted to reflect the two-for-one stock split effective February 10, 1992.
 -0- 10/15/92
 /CONTACT: George R. Mahoney, Jr., Executive Vice President, Family Dollar Stores, 704-847-6961/
 (FDO) CO: Family Dollar Stores ST: North Carolina IN: REA SU: ERN


CM -- CH002 -- 0245 10/15/92 09:13 EDT
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Date:Oct 15, 1992
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