Family Dollar Stores Inc (FDO), the target of two rival U.S. dollar store chains, reported a 47 percent drop in quarterly profit as margins fell due to higher discounting.
The No. 2 U.S. discount retailer’s net income fell to $41.4 million, or 36 cents per share, in the first quarter ended Nov. 29, from $78 million, or 68 cents per share, a year earlier.
Revenue rose to $2.56 billion from $2.5 billion.
The company’s shareholders decided late last month to postpone a vote on a takeover by Dollar Tree Inc in the face of a higher hostile bid from Dollar General Corp.