Just before the opening bell on October 7, discount retailer Family Dollar Stores Inc. (FDO) confirmed that the company’s profit during the 4Q advanced year-over-year, due in large part to cash-conscious shoppers stretching their monies further. Current results topped analysts’ expectations, despite the weakened economy.

For the quarter, Family Dollar recorded net income of $60.1M, or $0.43 per share, compared to the same quarter a year ago when the company posted a profit of $53.2M, or $0.38 per share, representing an increase in net earnings of nearly 13% year-over-year.

Meanwhile, revenues advanced as well, climbing from $1.77B to $1.81B, an increase in year-over-year sales of 2.3%. Revenues generated from stores opened at least one year advanced 1%, as an increase in store traffic aided in the higher sales figures.

On average, analysts within the industry were looking for Family Dollar to post a quarterly profit of $0.41 per share based on overall sales totals of $1.81B.

Howard Levine, Chairman and CEO at Family Dollar, commented on the company’s results, “The fourth quarter was our most challenging quarter this year. Not only did we anniversary the effect of last year’s stimulus package, but we also re-merchandised the sales floor in approximately half our chain during the quarter. While our ambitious pace did pressure SG&A expenses in the quarter, I believe that these investments support our continued efforts to expand our assortment of key traffic-driving consumables and improve the in-store shopping experience.”

Peeking inside the company’s individual operating segments, FDO’s Consumables unit witnessed the strongest sales throughout the company, posting overall revenues of $1.2B, up nearly 7% from the previous year. Throughout the remainder of the company’s operating units, sales declined in each of the three segments.

Family Dollar’s Home products saw an almost 5% drop in sales year-over-year to $217M, while revenues from Apparel and Accessories plunged 7.7% to $211.2M. Lastly, the company’s Seasonal and Electronics departments saw sales fall marginally over last year’s figures, coming in at $184M, down 0.7% year-over-year.

Gross profit for the quarter came in at 34.5% of total sales, or $625.3M, higher than the previous year’s figure of 32.9% of sales, or $581.3M. Family Dollar attributed the increase in gross profit to lower expenses, reduced inventories and higher mark-ups on sale items. Additionally, operating profits for the period advanced as well, climbing from $82.1M, or 4.6% of sales, to $91.8M, or 5% of overall sales.

For the fiscal year 2009, Family Dollar managed to post net earnings of $291.3M, or $2.07 per share, up almost 25% from the previous year’s annual profit of $233.1M, or $1.66 per share.

Annual sales for the company came in at $7.4B, up from 2008 totals of $6.98B, an increase in yearly revenues of more than 6%. Same store sales increased year-over-year as well, up more than 4%.

Analysts, on average, were looking for annual earnings from Family Dollar to be $2.05 per share based on yearly revenues of $7.41B.

Levine later added, “Despite the challenges resulting from a rapidly changing economic environment, our team has delivered a strong performance this year, driving improvements across most key metrics, including increased customer traffic, operating margin expansion, earnings-per-share growth, greater inventory productivity and higher employee retention.”

Moving forward, Family Dollar offered both 1Q and yearly projections. For the upcoming 1Q, FDO is looking to post a profit between $0.45 and $0.50 per share, with quarterly sales expected to increase between 5% and 7% over last year’s 1Q sales. Same store sales for the period are projected to increase between 3% and 5%.

Analysts, in the meantime, are predicting a quarterly profit of $0.47 per share with revenues coming in at $1.85B, representing a 5.6% increase over last year’s 1Q sales total.

For fiscal 2010, FDO is looking to record annual earnings in the range of $2.15 to $2.35 per share, with yearly revenues growing between 5% and 7% over 2009 totals. Annual same store sales are also expected to increase between 3% and 5% over last year’s results.

Analysts are looking for 2010 profits to be $2.25 per share based on annual revenues of $7.74B.

“While predicting near-term economic conditions remains difficult, we believe that the current consumer focus on saving money will remain strong in 2010. Our strategy of providing value and convenience positions us well to deliver sustainable growth for our shareholders as the economy stabilizes and improves,” Levine commented on the company’s projected forecast.

With the October 7 trading session concluded, shares of Family Dollar retreated marginally by the close, slipping $0.27, or 0.9%, to finish at $28.21 per share. Over the past year, the company’s stock price has reached a high of $35.00 per share and a low of $19.70 per share.