By Dhanya Skariachan
(Reuters) - Family Dollar Stores Inc
Shares of the discount chain fell 7.3 percent to $61.50 in premarket trading on Thursday.
The company also said President and Chief Operating Officer Michael Bloom had resigned to pursue other interests and that it would conduct a search for a replacement.
Net income fell to $78 million, or 68 cents a share, in the first quarter ended November 30 from $80.3 million, or 69 cents a share, a year earlier.
Analysts on average were expecting a profit of 69 cents a share, according to Thomson Reuters I/B/E/S.
"Our core customers continued to face economic uncertainties, and the promotional environment intensified," Chief Executive Officer Howard Levine said.
Dollar stores have battled a weak economy and increased competition from discounters such as Wal-Mart Stores Inc
In October, Family Dollar said it was taking a cautious approach to 2014 as shoppers focused on basics.
Net sales in the first quarter rose 3.2 percent to $2.50 billion, but missed the analysts' estimate of $2.51 billion.
Sales at stores open at least a year fell 2.8 percent on fewer customer transactions and a drop in the average transaction value.
For the second quarter, the company expects same-store sales to fall in the low-single-digit percentage range. It forecast earnings per share of between 85 cents and 95 cents, below the profit of $1.21 a year earlier.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)