(MATTHEWS) -- Family Dollar Stores, Inc. reported its fiscal first quarter net sales increased 9.5% to $1.997 billion. This compared to $1.823 billion in the first quarter of fiscal 2010.

First quarter net income for the Matthews-based discount retailer increased 9.9% to $74.3 million. This compared with net income of $67.6 million for the same period of the previous year.  Net income per diluted share for the quarter increased 18.4% to $0.58 compared with $0.49 for the first quarter of fiscal 2010.

"Our comparable store sales increase of 6.9% is the best first quarter result we've delivered in more than twelve years," said Howard R. Levine, Chairman and Chief Executive Officer. "Clearly, our investments to improve the shopping experience in our stores are positioning us well to serve a growing number of Family Dollar customers."