**EXHIBIT 11**

** **

FAMILYDOLLAR STORES, INC.

STATEMENTRE COMPUTATIONS OF PER SHARE EARNINGS

 
|                                                                                                                                |   | **QUARTER ENDED  March 1, 2003** |   | **QUARTER ENDED  March 2, 2002** |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|----------------------------------|--------|
| **AS PRESENTED (IN  THOUSANDS, EXCEPT PER SHARE AMOUNTS)**                                                                          |   | **BASIC**                        |   | **DILUTED**                      |   | **BASIC** |   | **DILUTED** | ** ** |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| AVERAGE SHARES OUTSTANDING                                                                                                          |   | 172,151                          |   | 172,151                          |   | 172,598 |   | 172,598 |   |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| NET INCOME                                                                                                                          |   | $                                | 72,715 |                             | $      | 72,715 |   | $ | 63,768 |   | $ | 63,768 |   |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| NET INCOME PER SHARE                                                                                                                |   | $                                | 0.42   |                             | $      | 0.42 |   | $ | 0.37 |   | $ | 0.37 |   |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| 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                    |   |                             |   | 5,592                            |   |   |   | 5,162 |   |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES ASSUMED  REPURCHASED FROM ASSUMED PROCEEDS OF EXERCISES USING TREASURY STOCK METHOD  (AVERAGE MARKET PRICE) |   |                             |   |                             |   |   |   |   |   |
|                                                                                                                                |   |                             |   | (4,706                           | )      |   |   | (3,826 | ) |
| NET PRO FORMA COMMON STOCK  EQUIVALENT INCREMENTAL SHARES                                                                           |   |                             |   | 886                              |   |   |   | 1,336 |   |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| PERCENTAGE DILUTION FROM PRO FORMA  COMMON STOCK EQUIVALENT INCREMENTAL SHARES                                                      |   |                             |   | 0.51                             | %      |   |   | 0.77 | % |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| TOTAL COMMON STOCK AND COMMON  STOCK EQUIVALENTS                                                                                    |   |                             |   | 173,037                          |   |   |   | 173,934 |   |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| NET INCOME                                                                                                                          |   |                             |   | $                                | 72,715 |   |   |   | $ | 63,768 |   |
|                                                                                                                                |   |                             |   |                             |   |   |   |   |   |
| PRO FORMA NET INCOME PER SHARE  (INCLUDING DILUTIVE COMMON STOCK EQUIVALENTS)                                                       |   |                             |   | $                                | 0.42   |   |   |   | $ | 0.37 |   |

 

1

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|                                                                                                                                |   | **FIRST HALF ENDED  March 1, 2003** |    | **FIRST HALF ENDED  March 2, 2002** |    |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|---------|-------------------------------------|---------|
| **AS PRESENTED (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)**                                                                           |   | **BASIC**                           |    | **DILUTED**                         |    | **BASIC** |   | **DILUTED** |   |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| AVERAGE SHARES OUTSTANDING                                                                                                          |   | 172,614                             |    | 172,614                             |    | 172,425 |   | 172,425 |   |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| NET INCOME                                                                                                                          |   | $                                   | 130,193 |                                | $       | 130,193 |   | $ | 113,975 |   | $ | 113,975 |   |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| NET INCOME PER SHARE                                                                                                                |   | $                                   | 0.75    |                                | $       | 0.75 |   | $ | 0.66 |   | $ | 0.66 |   |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| 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                    |   |                                |    | 5,666                               |    |   |   | 5,321 |   |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| WEIGHTED AVERAGE SHARES ASSUMED  REPURCHASED FROM ASSUMED PROCEEDS OF EXERCISES USING TREASURY STOCK METHOD  (AVERAGE MARKET PRICE) |   |                                |    |                                |    |   |   |   |   |
|                                                                                                                                |   |                                |    | (4,791                              | )       |   |   | (3,980 | ) |
| NET PRO FORMA COMMON STOCK  EQUIVALENT INCREMENTAL SHARES                                                                           |   |                                |    | 875                                 |    |   |   | 1,341 |   |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| PERCENTAGE DILUTION FROM PRO FORMA  COMMON STOCK EQUIVALENT INCREMENTAL SHARES                                                      |   |                                |    | 0.51                                | %       |   |   | 0.78 | % |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| TOTAL COMMON STOCK AND COMMON  STOCK EQUIVALENTS                                                                                    |   |                                |    | 173,489                             |    |   |   | 173,766 |   |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| NET INCOME                                                                                                                          |   |                                |    | $                                   | 130,193 |   |   |   | $ | 113,975 |   |
|                                                                                                                                |   |                                |    |                                |    |   |   |   |   |
| PRO FORMA NET INCOME PER SHARE  (INCLUDING DILUTIVE COMMON STOCK EQUIVALENTS)                                                       |   |                                |    | $                                   | 0.75    |   |   |   | $ | 0.66 |   |

 

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