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Family Dollar’s quarterly profit nearly halves

January 8, 2015, 12:43 PM UTC
Inside A Family Dollar Store Ahead Of Earnings Figures
A man walks into a Family Dollar Stores Inc. location in Mansfield, Texas, U.S., on Tuesday, Jan. 7, 2014. Family Dollar Stores Inc. is expected to release quarterly earnings results on Jan. 9. Photographer: Ben Torres/Bloomberg via Getty Images
Photograph by Ben Torres — Bloomberg via Getty Images

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.