Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-6807
FAMILY DOLLAR STORES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 56-0942963
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 1017, 10401 Old Monroe Road
Charlotte, North Carolina 28201-1017
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 704-847-6961
Indicate by check mark whether the registrant (1) has filed all re-
ports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at June 30, 1995
Common Stock, $.10 par value 56,719,932 shares
<PAGE>
FAMILY DOLLAR STORES, INC., AND SUBSIDIARIES
INDEX
Page No.
Part I - Financial Information
Item I - Consolidated Condensed Financial Statements:
Consolidated Condensed Balance Sheets -
May 31, 1995 and August 31, 1994 2
Consolidated Condensed Statements of Income -
Three Months Ended May 31, 1995 and 1994 3
Consolidated Condensed Statements of Income -
Nine Months Ended May 31, 1995 and 1994 4
Consolidated Condensed Statements of Cash Flows -
Nine Months Ended May 31, 1995 and 1994 5
Notes to Consolidated Condensed Financial
Statements 6-7
Computation of Earnings per Common Share -
Note 8 7
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8-10
Part II - Other Information and Signatures
Item 6 - Exhibits and Reports on Form 8-K 11
Signatures 11
<PAGE>
<TABLE>
FAMILY DOLLAR STORES, INC., AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
<CAPTION>
May 31, August 31,
1995 1994
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents (Note 2) $ 35,365,996 $ 9,882,533
Merchandise inventories 398,046,774 403,570,733
Deferred income taxes (Note 3) 15,611,213 12,991,213
Income tax refund receivable - 4,569,686
Prepayments and other current assets 4,701,591 4,853,416
Total current assets 453,725,574 435,867,581
Property and equipment, net 156,607,712 151,946,323
Other assets 4,320,899 5,007,967
$614,654,185 $592,821,871
<PAGE>
<CAPTION>
Liabilities and Shareholders' Equity
<S> <C> <C>
Current liabilities:
Notes payable (Note 4) $ - $ 12,300,000
Accounts payable and accrued
liabilities 188,421,448 193,332,807
Income taxes payable 3,888,061 -
Total current liabilities 192,309,509 205,632,807
Deferred income taxes (Note 3) 18,259,789 17,016,789
Contingencies (Note 5)
Shareholders' equity (Notes 6 and 8):
Preferred stock, $1 par; authorized
and unissued 500,000 shares
Common stock, $.10 par;
authorized 120,000,000 shares;
issued 60,171,154 shares at
May 31, 1995 and 60,039,074
shares at August 31, 1994 6,017,115 6,003,907
Capital in excess of par 15,514,331 14,484,153
Retained earnings 393,902,709 361,033,483
415,434,155 381,521,543
Less common stock held in treasury,
at cost (3,452,822 shares at
May 31, 1995 and August 31, 1994-
Note 8) 11,349,268 11,349,268
Total shareholders' equity 404,084,887 370,172,275
$614,654,185 $592,821,871
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
FAMILY DOLLAR STORES, INC., AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
Three Months Ended
May 31, May 31,
1995 1994
<S> <C> <C>
Net sales $379,836,418 $349,211,034
Costs and expenses:
Cost of sales 248,576,982 217,657,121
Selling, general and
administrative expenses
(Note 7) 104,842,114 103,517,720
353,419,096 321,174,841
Income before provision
for taxes on income 26,417,322 28,036,193
Provision for taxes on income 10,012,000 10,465,900
Net income $ 16,405,322 $ 17,570,293
Net income per common share
(Note 8) $0.29 $0.31
Dividends per common share $0.10 $0.085
Weighted average number of
common shares outstanding (Note 8) 56,717,050 56,554,036
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
FAMILY DOLLAR STORES, INC., AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
Nine Months Ended
May 31, May 31,
1995 1994
<S> <C> <C>
Net sales $1,157,055,574 $1,083,070,436
Costs and expenses:
Cost of sales 765,976,744 688,976,950
Selling, general and
administrative expenses (Note 7) 311,320,932 306,020,436
1,077,297,676 994,997,386
Income before income taxes and
cumulative effect of accounting
change 79,757,898 88,073,050
Income taxes 30,726,000 33,531,900
Income before cumulative effect
of accounting change 49,031,898 54,541,150
Cumulative effect of change in method
of accounting for income taxes (Note 3) - 1,139,153
Net income $ 49,031,898 $ 55,680,303
Earnings per common share (Note 8):
Income before cumulative effect
of accounting change $0.87 $0.97
Cumulative effect of change in method
of accounting for income taxes - .02
Net income (Note 8) $0.87 $0.99
Dividends per common share $0.285 $0.245
Weighted average number of
common shares outstanding (Note 8) 56,669,293 56,467,955
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
FAMILY DOLLAR STORES, INC., AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Nine Months Ended
May 31, May 31,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $49,031,898 $55,680,303
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 16,506,746 14,200,506
Deferred income taxes (1,377,000) (1,924,541)
Gain on disposition of property
and equipment (2,030) (77,450)
Changes in operating assets and liabilities:
Inventories 5,523,959 (13,297,770)
Income tax refund receivable 4,569,686 -
Prepayments and other current assets 151,825 694,824
Other assets 687,068 (304,961)
Accounts payable and accrued
liabilities (5,773,480) (12,925,271)
Income taxes payable 3,888,061 3,713,633
Noncurrent income taxes payable - (1,008,039)
73,206,733 44,751,234
Cash flows from investing activities:
Capital expenditures (21,783,944) (34,267,225)
Proceeds from dispositions of
property and equipment 617,839 1,196,522
(21,166,105) (33,070,703)
Cash flows from financing activities:
Net notes payable repayments (12,300,000) -
Exercise of employee stock options 1,043,386 2,371,021
Payment of dividends (15,300,551) (13,263,663)
(26,557,165) (10,892,642)
Net change in cash and cash equivalents 25,483,463 787,889
Cash and cash equivalents at beginning
of period 9,882,533 5,684,034
Cash and cash equivalents at end of period $35,365,996 $ 6,471,923
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 545,826 $ 377,035
Income taxes 23,301,112 30,709,613
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
FAMILY DOLLAR STORES, INC., AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying unaudited con-
solidated condensed financial statements contain all adjust-
ments (consisting of only normal recurring accruals) necessary
to present fairly the financial position as of May 31, 1995,
and the results of operations for the three and nine months
ended May 31, 1995, and 1994, and the cash flows for the nine
months ended May 31, 1995, and 1994.
The results of operations for the nine month period ended May
31, 1995, are not necessarily indicative of the results to be
expected for the full year.
2. The Company considers all highly liquid investments with a
maturity of three months or less to be "cash equivalents."
3. Effective September 1, 1993, the Company adopted Statement of
Financial Accounting Standards No. 109, Accounting for Income
Taxes ("SFAS 109"). The cumulative effect as of September 1,
1993, of adopting SFAS 109 increased net income for the nine
month period ended May 31, 1994, by approximately $1.1 million
or $.02 per share.
Under SFAS 109, deferred income taxes arise principally from
the tax effect of temporary differences between financial
reporting and tax bases of property and equipment, merchandise
inventories, and accrued liabilities such as accrued insurance
costs and deferred incentive compensation.
4. The Company has two unsecured bank lines of credit for
short-term revolving borrowings of up to $50,000,000 each, or
$100,000,000 of total borrowing capacity. The lines of credit
expire on February 28, 1996 and February 13, 1996,
respectively. Borrowings under these lines of credit are at a
variable interest rate equal to the lower of the bank's prime
interest rate minus one-half percent or a rate based on
short-term market interest rates. The Company may convert up
to $50,000,000 of the line of credit expiring February 28,
1996, into either a five, seven, or nine year term loan, at
the bank's variable prime rate.
5. The Internal Revenue Service has examined the Company's
consolidated 1991 and 1992 federal income tax returns and has
rendered a report and assessment as a result of the
examination. The Company appealed the findings of the report
and all issues have been resolved except for the timing of the
Company's deduction for inventory shrinkage. The Company
filed a petition in U.S. Tax Court in April 1995 regarding
this issue. Although the ultimate outcome of this issue
cannot presently be determined, the Company believes that any
impact on its financial statements will not be material.
<PAGE>
6. The Company's non-qualified stock option plans provide for the
granting of options to key employees to purchase shares of common
stock at prices not less than the fair market value on the date of
grant. Options expire five years from the date of grant and are ex-
ercisable to the extent of 40% after the second anniversary of the
grant and an additional 30% at each of the following two anniver-
sary dates on a cumulative basis. All shares available for option
as of May 31, 1995, were issuable under the current plan which
expires in November 1998, covering a maximum of 2,200,000 shares.
<TABLE>
The following is a summary of transactions under the plans
during the nine months ended May 31, 1995 and 1994.
<CAPTION>
Nine Months Ended
May 31, 1995 May 31, 1994
Number of Number of
shares Option price shares Option price
under option per share under option per share
<S> <C> <C> <C> <C>
Outstanding-beginning 951,290 $ 5.13-$21.25 1,120,510 $ 5.13-$21.25
Granted 388,550 $10.25-$13.00 218,800 $14.25-$16.75
Exercised (132,080) $ 5.13-$ 6.13 (225,030) $ 5.13-$16.63
Cancelled (56,440) (144,330)
Outstanding-ending 1,151,320 $ 5.88-$21.25 969,950 $ 5.13-$21.25
At May 31, 1995, options to purchase 389,615 shares were exercisable
at prices ranging from $5.88 to $21.25 per share, and at May 31,
1994, options to purchase 325,950 shares were exercisable at prices
ranging from $5.13 to $20.50 per share.
</TABLE>
7. Interest expense for the nine months ended May 31, 1995, was
$478,136 and for the nine months ended May 31, 1994, was
$186,710. During the nine months ended May 31, 1994, $196,720
of interest was capitalized as part of the cost of
constructing a new distribution facility in West Memphis,
Arkansas.
8. Earnings per common share is based on the weighted average
number of shares outstanding during each reporting period.
Exercise of outstanding stock options would have no material
dilutive effect on earnings per common share.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Company's working capital increased by $31,181,291, from
$230,234,774 at August 31, 1994 to $261,416,065 at May 31, 1995. The
principal source of new working capital continued to be the reinvestment
of a significant portion of the earnings of the Company. The Company's
merchandise inventories decreased slightly during the first nine months
of fiscal 1995, compared to a slight increase during the first nine
months of fiscal 1994. During the third quarter of fiscal 1994, the
stocking of the Company's West Memphis, Arkansas distribution facility,
which was opened in May 1994, contributed to a temporary increase in
inventories. During 1995, the Company purchased lower price point
apparel, thereby reducing apparel inventory on a per store basis, in
conjunction with an overall price reduction program that began in the
second quarter of fiscal 1994 as the Company moved toward an everyday
low price strategy. This program was expanded at the start of fiscal
1995 from approximately 1,000 stores to 1,800 stores, and the number of
stockkeeping units with price reductions increased from approximately
500 to approximately 2,500. A lesser number of price reductions were
taken in the balance of the stores in less competitive markets.
Capital expenditures for the nine months ended May 31, 1995, were
approximately $21,784,000, and are currently planned to be approximately
$25 million for fiscal 1995. The majority of capital expenditures for
fiscal 1995 is directly related to the Company's retail store expansion
program. In fiscal 1995, the Company plans to open at least 210 stores
and close approximately 10 stores for a net addition of at least 200
stores, compared with the opening of 202 stores and closing of 22 stores
for a net addition of 180 stores in fiscal 1994.
Pursuant to agreements with Winn's Stores, Incorporated in July
1994, November 1994, and December 1994, subsidiaries of the Company
acquired the leases on 44 stores and purchased 11 stores from Winn's.
Fifty-three of the 55 stores are located in Texas and 2 are located in
New Mexico. The Company occupies most of its stores under operating
leases. New store opening and closing plans, as well as overall capital
expenditure plans, are continuously reviewed and are subject to change
depending on developments in the economy and other factors.
<PAGE>
RESULTS OF OPERATIONS
NET SALES
Net sales increased 8.8% in the quarter ended May 31, 1995, as
compared with the quarter ended May 31, 1994, and increased 6.8% in the
nine month period ended May 31, 1995, as compared with the nine month
period ended May 31, 1994. The increase was attributable to sales from
new stores opened as part of the Company's store expansion program.
Sales in existing stores decreased 0.2% in the quarter ended May 31,
1995, as compared with the same period ended May 31, 1994, and
decreased 2.1% in the nine month period ended May 31, 1995. Sales of
apparel were weaker in the quarter and nine months ended May 31, 1995,
compared to the same periods last year. The Company's lower price
point apparel, purchased as part of its overall price reduction
program, has not generated planned unit movement increases,
contributing to sales declines in softlines departments. The Company
is generally pleased with the results of the price reduction program in
hardlines but sales increases in hardlines were offset by sales
decreases in softlines.
The comparable store sales decreases for the quarter and nine
months ended May 31, 1995, are also attributable to reduced advertising
during these periods compared to the prior year. In connection with
the Company's shift in its merchandise strategy away from promotional
pricing and toward everyday low prices, the Company is reducing the
number of advertising circulars in fiscal 1995 from 22 to 15 and
eliminating all 7 advertising coupon booklets that were distributed in
fiscal 1994. Three advertising circulars and two coupon booklets were
eliminated in the first quarter of fiscal 1995, two coupon booklets
were eliminated in the second quarter of fiscal 1995, and two circulars
and two coupon booklets were eliminated in the third quarter of fiscal
1995, as compared to the same quarters of fiscal 1994, respectively.
The average number of stores open during the first nine months of
fiscal 1995 was 9.7% more than during the first nine months of fiscal
1994. The Company had 2,374 stores in operation at May 31, 1995, as
compared with 2,152 stores in operation at May 31, 1994, representing
an increase of approximately 10.3%.
COST OF SALES
Cost of sales increased 14.2% in the quarter ended May 31, 1995, as
compared with the quarter ended May 31, 1994 and increased 11.2% in the
nine months ended May 31, 1995, as compared with the nine months ended
May 31, 1994. These increases primarily reflected the additional sales
volume between years. Cost of sales, as a percentage of net sales, was
65.4% in the quarter ended May 31, 1995, compared with 62.3% in the
quarter ended May 31, 1994, and was 66.2% in the nine months ended May
31, 1995, compared with 63.6% in the nine months ended May 31, 1994.
The increases in the cost of sales percentages for the quarter and nine
months ended May 31, 1995, were due primarily to the merchandise price
reductions that were taken as part of the expansion of the price
reduction program and shift toward an everyday low price strategy.
<PAGE>
These price reductions are expected to continue to increase the cost of
sales percentage for the fourth quarter of fiscal 1995, as compared to
the fourth quarter of fiscal 1994. The reduction in sales of apparel,
which generally carries a higher margin than hardlines merchandise, as
a percentage of net sales also contributed to the increase in the cost
of sales percentages for the quarter and nine months ended May 31,
1995. The cost of sales percentages also are affected by other changes
in the effectiveness of the merchandise procurement programs and
product mix, and also by merchandise shrinkage losses and freight costs.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses increased 1.3% in the
quarter ended May 31, 1995, as compared with the quarter ended May 31,
1994, and 1.7% in the nine months ended May 31, 1995, as compared with
the nine months ended May 31, 1994. The increases in these expenses
were due to additional costs arising from the continued growth in the
number of stores in operation. Selling, general and administrative
expenses, as a percentage of net sales, were 27.6% in the quarter ended
May 31, 1995, as compared with 29.6% in the quarter ended May 31, 1994,
and were 26.9% in the nine months ended May 31, 1995, as compared to
28.3% in the nine months ended May 31, 1994. The decreases in these
percentages for the quarter and nine months ended May 31, 1995, were
due to the reduction in advertising, as described under the heading
"Net Sales" above, and to the Company's efforts to tightly control
store operating costs and corporate overhead expenses. The increased
item sales movement resulting from the merchandise price reduction
program is expected to continue to increase distribution expenses as
the Company handles additional units of lower priced merchandise.
PROVISION FOR TAXES ON INCOME
The provision for taxes on income for the quarter ended May 31,
1995, decreased 4.3% as compared with the quarter ended May 31, 1994,
and for the nine months ended May 31, 1995, decreased 8.4%, prior to
the effect of adopting Statement of Financial Accounting Standards
(SFAS) No. 109 (described in Note 3 to the Consolidated Condensed
Financial Statements), as compared with the nine months ended May 31,
1994. The variance between the periods is primarily due to the
decrease in income before the provision for income taxes. The
effective tax rate was 37.9% for the quarter ended May 31, 1995, as
compared to 37.3% for the quarter ended May 31, 1994, and was 38.5% for
the nine months ended May 31, 1994, as compared to 38.1% (prior to the
effect of the adoption of SFAS No. 109) for the nine months ended May
31, 1994. The increase in the effective rate resulted primarily from
increases in state income tax rates.
<PAGE>
PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits filed herewith:
11 Statement Re: Computations of Per Share Earnings
(b) Reports on Form 8-K - None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
FAMILY DOLLAR STORES, INC.
(Registrant)
Date: July 7, 1995 JOHN D. REIER
JOHN D. REIER
(President)
Date: July 7, 1995 C. MARTIN SOWERS
C. MARTIN SOWERS
(Senior Vice President-Finance)
Date: July 7, 1995 ROBYN W. CONNER
ROBYN W. CONNER
(Vice President-Controller
Principal Accounting Officer)
<TABLE>
<CAPTION>
FAMILY DOLLAR STORES, INC. EXHIBIT 11
STATEMENT RE COMPUTATIONS OF PER SHARE EARNINGS Page 1 of 2
THREE MONTHS ENDED THREE MONTHS ENDED
MAY 31, 1995 MAY 31, 1994
AS PRESENTED PRIMARY FULLY DILUTED PRIMARY FULLY DILUTED
<S> <C> <C> <C> <C>
AVERAGE SHARES OUTSTANDING FOR
THE THREE MONTHS ENDED 56,717,050 56,717,050 56,554,036 56,554,036
NET INCOME $16,405,322 $16,405,322 $17,570,293 $17,570,293
EARNINGS PER SHARE $ .29 $ .29 $ .31 $ .31
PRO FORMA DILUTION IMPACT OF COMMON STOCK EQUIVALENTS
ADDITIONAL WEIGHTED AVERAGE
SHARES FROM ASSUMED EXERCISE AT
THE BEGINNING OF THE YEAR OF
DILUTIVE STOCK OPTIONS 189,733 189,733 396,533 396,533
WEIGHTED AVERAGE SHARES ASSUMED
REPURCHASED FROM ASSUMED PROCEEDS
OF EXERCISES USING TREASURY STOCK
METHOD (AVERAGE MARKET PRICE FOR
PRIMARY AND, IF GREATER, ENDING
MARKET PRICE FOR FULLY DILUTED) (156,728) (156,728) (249,601) (249,601)
NET PRO FORMA COMMON STOCK
EQUIVALENT INCREMENTAL SHARES 33,005 33,005 146,932 146,932
PERCENTAGE DILUTION FROM PRO FORMA
COMMON STOCK EQUIVALENT
INCREMENTAL SHARES 0.06% 0.06% 0.26% 0.26%
TOTAL COMMON STOCK AND COMMON
STOCK EQUIVALENTS 56,750,055 56,750,055 56,700,968 56,700,968
NET INCOME $16,405,322 $16,405,322 $17,570,293 $17,570,293
PRO FORMA EARNINGS PER SHARE (INCLUDING
DILUTIVE COMMON STOCK EQUIVALENTS) $ .29 $ .29 $ .31 $ .31
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FAMILY DOLLAR STORES, INC. STATEMENT RE COMPUTATIONS OF PER SHARE EARNINGS EXHIBIT 11
Page 2 of 2
NINE MONTHS ENDED NINE MONTHS ENDED
AS PRESENTED MAY 31, 1995 MAY 31, 1994
PRIMARY FULLY DILUTED PRIMARY FULLY DILUTED
<S> <C> <C> <C> <C>
AVERAGE SHARES OUTSTANDING FOR THE
NINE MONTHS ENDED 56,669,293 56,669,293 56,467,955 56,467,955
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE $49,031,898 $49,031,898 $54,541,150 $54,541,150
NET INCOME $49,031,898 $49,031,898 $55,680,303 $55,680,303
EARNINGS PER SHARE:
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE $ .87 $ .87 $ .97 $ .97
NET INCOME $ .87 $ .87 $ .99 $ .99
PRO FORMA DILUTION IMPACT OF COMMON STOCK EQUIVALENTS
ADDITIONAL WEIGHTED AVERAGE SHARES FROM
ASSUMED EXERCISE AT THE BEGINNING
OF THE YEAR OF DILUTIVE STOCK OPTIONS 216,396 216,396 478,464 478,464
WEIGHTED AVERAGE SHARES ASSUMED REPURCHASED FROM
ASSUMED PROCEEDS OF EXERCISES USING TREASURY STOCK
METHOD (AVERAGE MARKET PRICE FOR PRIMARY AND, IF
GREATER, ENDING MARKET PRICE FOR FULLY DILUTED) (165,348) (164,796) (298,007) (298,007)
NET PRO FORMA COMMON STOCK
EQUIVALENT INCREMENTAL SHARES 51,048 51,600 180,457 180,457
PERCENTAGE DILUTION FROM PRO FORMA COMMON
STOCK EQUIVALENT INCREMENTAL SHARES 0.09% 0.09% 0.32% 0.32%
TOTAL COMMON STOCK AND COMMON
STOCK EQUIVALENTS 56,720,341 56,720,893 56,648,412 56,648,412
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE $49,031,898 $49,031,898 $54,541,150 $54,541,150
NET INCOME $49,031,898 $49,031,898 $55,680,303 $55,680,303
PRO FORMA EARNINGS PER SHARE (INCLUDING DILUTIVE
COMMON STOCK EQUIVALENTS):
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE $ .87 $ .87 $ .96 $ .96
NET INCOME $ .87 $ .87 $ .98 $ .98
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED CONDENSED FINANCIAL STATEMENTS OF FAMILY DOLLAR STORES, INC.
AND SUBSIDIARIES FOR THE NINE MONTHS ENDED MAY 31, 1995, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> MAY-31-1995
<EXCHANGE-RATE> 1
<CASH> 35,365,996
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 398,046,774
<CURRENT-ASSETS> 453,725,574
<PP&E> 279,614,116
<DEPRECIATION> 123,006,404
<TOTAL-ASSETS> 614,654,185
<CURRENT-LIABILITIES> 192,309,509
<BONDS> 0
<COMMON> 6,017,115
0
0
<OTHER-SE> 398,067,772
<TOTAL-LIABILITY-AND-EQUITY> 614,654,185
<SALES> 1,157,055,574
<TOTAL-REVENUES> 1,157,055,574
<CGS> 765,976,744
<TOTAL-COSTS> 1,077,297,676
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 79,757,898
<INCOME-TAX> 30,726,000
<INCOME-CONTINUING> 49,031,898
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 49,031,898
<EPS-PRIMARY> .87
<EPS-DILUTED> .87
</TABLE>
