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 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 <WMT.N>, which are
offering more items priced at $1 or less to woo thrifty shoppers.
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.
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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)
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