Family Dollar Stores reported a weaker-than-expected quarterly profit and gave a tepid outlook for the current period after it discounted more than it had originally planned to win shoppers in the key holiday shopping season.
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 Nov. 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.
Sales at stores open at least a year fell 2.8 percent on fewer customer transactions and a drop in the average transaction value.