(RTTNews) - Discount retail chain Family Dollar Stores, Inc. (FDO: News ) Wednesday reported a 33.3% year-over-year increase in profit for the second quarter, helped by a 6.4% increase in comparable store sales on double-digit sales growth of consumable merchandise reflecting higher customer traffic and transaction value. Earnings per share for the quarter surged and came in line with analysts' expectations, while quarterly sales grew 8.7% and narrowly topped consensus estimate. The company also provided third quarter earnings forecast, above analysts' projections, and lifted fiscal 2009 outlook.

The retailers have been struggling through one of the worst periods in recent history, on deteriorating economic climate, and eroding consumer confidence. The current economic trends of high prices for health care, food, insurance and mortgages, together with declining job security have been tough on retail customers with fewer discretionary dollars left in their budgets.

However, Charlotte, North Carolina-based Family Dollar has been witnessing an increase in bargain shoppers for groceries and other basic household products and turned to be a beneficiary at the time of recession.

The company noted that its multi-year focus on building and retaining great employee teams, improving merchandise quality, and making Family Dollar a more compelling place to shop, work and invest has positioned it well to serve its core customers better while also satisfying new customers.

In a statement, chairman and chief executive officer, Howard Levine said, "In today's challenging economic environment, families of all incomes are looking for ways to save money. Our strategy of providing both value and convenience continues to resonate well with consumers, and, as a result, we continue to capture more shopping trips and gain market share."

Second Quarter Results
The Charlotte, North Carolina-based Fortune 500 company posted net income of $84.14 million or $0.60 per share for the second quarter, up about 33% from $63.30 million or $0.45 per share in the prior-year quarter.

The company was looking for earnings between $0.59 and $0.61 per share, while 16 analysts surveyed by Thomson Reuters expected earnings of $0.60 per share for the second quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 8.7% to $1.99 billion from $1.83 billion in the same quarter last year, and narrowly topped fifteen Wall Street analysts' consensus estimate of $1.98 million.

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