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FAMILY DOLLAR REPORTS RECORD SECOND QUARTER AND SIX-MONTH SALES AND NET INCOME

 FAMILY DOLLAR REPORTS RECORD SECOND QUARTER
 AND SIX-MONTH SALES AND NET INCOME
 MATTHEWS, N.C., April 2 /PRNewswire/ -- Family Dollar Stores, Inc. (NYSE: FDO), a discount store chain operating 1,805 stores in a 29-state area ranging as far north as Wisconsin, east to Massachusetts, south to Florida and west to Texas, reported the highest sales and net income for any second quarter and first six- month period in the Company's history. For the second quarter ended February 29, 1992, sales were $317,802,348, or approximately 23.5 percent above sales of $257,211,870 for the second quarter of the prior fiscal year. Net income was $18,013,796, or approximately 50 percent above net income of $11,988,106 for the comparable quarter last year, and earnings per share, adjusted to reflect the two-for-one stock split effective February 10, 1992, increased to $.32 from $.22.
 For the six months ended February 29, 1992, sales were $581,701,235, or approximately 20.5 percent above sales of $481,926,793 for the first six months of the prior fiscal year. Net income was $29,619,560, or approximately 50 percent above net income of $19,768,512 for the comparable six-month period, and earnings per share, adjusted to reflect the two-for-one stock split effective February 10, 1992, increased to $.53 from $.36.
 In commenting on the record operating results, Leon Levine, Chairman of the Company, attributed the sales gains to increased sales in existing stores and to sales from new stores opened as part of the Company's store expansion program. Sales in existing stores increased approximately 17.1 percent in the quarter ended February 29, 1992, and approximately 14.4 percent in the six months ended February 29, 1992. There were 29 days in February 1992 compared to 28 days in February 1991, and the extra day was a Saturday. For the second quarter ended February 29, 1992, this extra day aided total and existing store sales by approximately 2 percent.
 Continued emphasis on keeping the stores in-stock with basic and seasonal merchandise, opportunistic buying of merchandise offering special values to customers, and stronger sales in certain apparel departments, including sales generated by seasonal clearance programs, contributed to the positive sales results. Gross profit margins continued to be favorably impacted by adjustments to the merchandise mix to emphasize sales in higher margin departments such as apparel. The combination of strong sales and higher gross profit margins produced the 50 percent increase in net income in both the quarter and six months ended February 29, 1992.
 Sales in March 1992 compared to March 1991 are estimated to have increased approximately 6.5 percent, with sales in existing stores estimated to have increased approximately 1 percent. This comparison is affected by the fact that there were only four Fridays and four Saturdays in March 1992 compared to five Fridays and five Saturdays in March 1991. If there had been the same number of each day of the week in March 1992 as in March 1991, the Company estimates that March 1992 total sales would have increased by approximately 14 percent and existing store sales would have increased by approximately 8 percent. In addition, Easter was in March last year and is in April this year. This change adversely impacts March 1992 sales but will positively affect April 1992 sales.
 Peter J. Hayes, President of the Company, reported that Family Dollar's store expansion program is continuing. At the beginning of the first and second quarters of the current fiscal year, the Company was operating 1,759 and 1,761 stores, respectively, compared to 1,680 and 1,685 stores in operation at the beginning of the first and second quarters of the prior fiscal year. Thirty-three new stores were opened and 4 stores were closed during the second quarter this year, compared to the opening of 19 stores and closing of 6 stores during the second quarter last year. The Company expects to have a net addition of approximately 120 stores in the current fiscal year, which would bring the number of stores in operation by August 31, 1992, to approximately 1,879.
 Comparable operating results (unaudited) are as follows:
 Three Months Ended
 February 29, 1992 February 28, 1991
 Net Sales $317,802,348 $257,211,870
 Income Before Income Taxes 28,689,696 19,238,106
 Income Taxes 10,675,900 7,250,000
 Net Income 18,013,796 11,988,106
 Net Income Per Common Share 32 cents 22 cents (A)
 Dividends Declared
 Per Common Share 6.5 cents 5.5 cents (A)
 Weighted Average
 Number of Shares 55,867,135 55,522,084 (A)
 Six Months Ended
 February 29, 1992 February 28, 1991
 Net Sales $581,701,235 $481,926,793
 Income Before Income Taxes 47,173,460 31,993,512
 Income Taxes 17,553,900 12,225,000
 Net Income 29,619,560 19,768,512
 Net Income Per Common Share 53 cents 36 cents (A)
 Dividends Declared
 Per Common Share 12 cents 10.5 cents (A)
 Weighted Average
 Number of Shares 55,824,688 55,508,300 (A)
 (A) Adjusted to reflect the two-for-one stock split effective February 10, 1992.
 -0- 4/2/92
 /CONTACT: George R. Mahoney, Jr., Exeuctive Vice President, Family DOllar Stores, Inc., 704-847-6961/
 (FDO) CO: Family Dollar Stores, Inc. ST: North Carolina IN: REA SU: ERN


DF -- CH002 -- 4217 04/02/92 09:05 EST
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Date:Apr 2, 1992
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