NEW YORK ( TheStreet) -- Family Dollar Stores ( FDO) is tanking Wednesday morning, after its first-quarter profit missed Wall Street's forecast. During the quarter, the discounter earned $74.3 million, or 58 cents a share, from $67.8 million, or 49 cents, in the year-ago period. Analysts were calling for a profit of 61 cents a share for Family Dollar . The disappointing profit was primarily due to lower gross margins and higher freight costs. Gross margin slipped to 36% from 36.1%. Nonetheless, on the top line, Family Dollar Chairman and Chief Executive Howard R. Levine said was the best first-quarter performance in more than 12 years. Family Dollar revenue rose 10% to $2 billion, while same-store sales grew 6.9%, receiving a boost from candy and food sales. Looking ahead, Family Dollar expects full-year earnings in the range of $3.08 to $3.23 a share, in-line with forecasts of $3.18 a share. For the second quarter, the company is calling for a profit between 92 cents and 97 cents a share, slightly shy of analysts' predictions of $1 a share. Shares of Family Dollar are tumbling 7.9% to $45.40 in pre-market trading. --Written by Jeanine Poggi in New York. >To contact the writer of this article, click here: Jeanine Poggi. >To follow the writer on Twitter, go to http://twitter.com/jpoggi. >To submit a news tip, send an email to: tips@thestreet.com.
