MATTHEWS, N.C. — Better-than-expected gross margins and tight control of expenses boosted Family Dollar’s quarterly net income by 7%, the retailer here said Wednesday. For the third quarter ended May 31, Family Dollar reported earnings of $64.7 million on sales of $1.7 billion. Although gross margin as a percent of sales decreased slightly from the same period last year, to 34.6% from 34.9%, the performance was better than officials had anticipated. The decline accompanied a greater shift toward consumable sales, including food, which increased by more than 9%, while items such as seasonal goods and apparel were challenged. Howard Levine, chairman and chief executive officer, said improved inventory controls and productivity initiatives drove the improved profits despite flat comparable-store sales.

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