Family Dollar Stores, Inc. (NYSE:FDO) reported earnings for its fourth fiscal quarter this morning before opening bell. The company said earnings per diluted share rose 27.5 percent to 88 cents per share. Adjusted diluted earnings per share were 86 cents—an increase of 14.7 percent. Total net sales for the quarter were $2.5 billion. Analysts were expecting the retail chain to report earnings of 84 cents on revenue of $2.56 billion.

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Family Dollar reports record results for Q4

Full-year earnings for the retail chain were $3.83 per share, while adjusted diluted earnings per share were $3.80 per share. Comparable store sales climbed 3 percent during the quarter excluding items. Chairman and CEO Howard R. Levine reported that this year’s results were a new record for the company’s fourth fiscal quarter.

The company reported items including a $5 million favorable adjustment in connection with a charge in accounting for some vendor allowances. It also reported an $11.5 million litigation charge. It also noted that the National Retail Federation Calendar allowed for 53 weeks instead of 52 weeks during the 2013 fiscal year. Family Dollar Stores, Inc. (NYSE:FDO) estimates that the extra week contributed about $189 million in sales and 7 cents per share in earnings.

More quarterly results for Family Dollar

Total net sales during the quarter rose 5.8 percent to $2.5 billion, compared with total net sales of $2.4 billion in the same quarter a year ago. Without excluding items, comparable store sales for Family Dollar were flat. Consumer traffic and the average customer transaction value were flat. The company noted the strongest sales in its Consumables category, which rose 8.3 percent, driven mostly by strong growth in refrigerated and frozen food, health aids and tobacco.

Gross profits for the quarter climbed 8.6 percent to $868.4 million or 34.7 percent of net sales. That’s compared with $799.8 million or 33.8 percent of net sales in the same quarter a year ago.

More full-year results for Family Dollar

Family Dollar reported that total net sales for the full year rose 11.4 percent to $10.4 billion. That’s compared with total net sales of $9.3 billion the year before. Gross profit for the full year rose 9 percent to $3.9 billion or 34.2 percent of net sales. That’s compared to $3.3 billion or 34.9 percent of net sales in the previous year.

During the full year, the retail chain opened 500 new stores and plans to open an additional 525 stores during the 2014 fiscal year. Family Dollar Stores, Inc. (NYSE:FDO) also introduced guidance for its fiscal 2014 year, indicating expectations of between $3.80 and $4.14 per share. The company said it is being cautions because of “the uncertainty of the operating environment and the near-term challenges” their customers are still facing.