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Feb 10 (Reuters) - Upscale grocery chain Whole Foods Market Inc reported profit and sales above analysts' estimates, as its efforts to shed its high-price "Whole Paycheck" image bear fruit.

Whole Foods is revamping its pricing and modernizing its business to fend off competition from grocers and retailers such as Kroger Co and Wal-Mart Stores Inc.

The company is investing in shorten check-out queues and plans to launch a chain of smaller, more value-focused stores next year.

Net income fell 6 percent to $157 million in the first quarter. On a per share basis, net income was flat at 46 cents per share as the company had a lower share count in the latest quarter.

Analysts on average were expecting 40 cents per share, according to Thomson Reuters I/B/E/S.

Whole Foods said sales at established stores fell 1.8 percent in the first quarter ended Jan. 17.

Overall sales rose 3.4 percent to $4.83 billion, above the average analyst estimate of 4.81 billion.

The company's shares were down 0.4 percent at $28.75 in extended trading on Wednesday.

(Reporting by Ramkumar Iyer in Bengaluru; Editing by Anil D'Silva)