Fred's Reports June Sales
MEMPHIS, Tenn. -- July 11, 2013
Fred's Inc. (NASDAQ: FRED) today reported sales for the five-week month of
June, which ended July 6, 2013.
Fred's total sales for the month increased 3% to $187.7 million from $182.6
million in June 2012. Comparable store sales for the month increased 4.5%
versus a decrease of 4.0% in the same period last year.
Fred's total sales for the first five months of fiscal 2013 increased 1% to
$841.6 million compared with $835.1 million for the same period last year. On
a comparable store basis, year-to-date sales were flat compared with a
decrease of 0.8% for the year-earlier period.
Commenting on the announcement, Bruce A. Efird, Chief Executive Officer, said,
"We are pleased to report a significant improvement in comparable store sales
for June, which exceeded our expectations and reflected increased customer
traffic and higher transaction amounts, coupled with the benefit of the
calendar shift early in the month. Our general merchandise initiatives in June
focused on driving customer traffic through promotions of consumables. In
addition, improved weather conditions throughout our markets also were
favorable to the Lawn & Garden, Summer Toys, and Seasonal departments, which
are now expected to be on plan for this quarter. The trend in pharmacy
department sales also shifted in June as comparable stores turned positive for
the first time in 10 months, and the department continued to experience
positive script growth. Our reconfiguration plan initiatives continue to gain
traction, and, based on the results of the first two months of the quarter, we
remain confident that our second quarter earnings will be in the range
During the month, Fred's closed 20 stores and opened a net of two new stores
and one new pharmacy location.
Fred's, Inc. operates 697 discount general merchandise stores, including 21
franchised Fred's stores, in the southeastern United States. For more
information about the Company, visit Fred's website at www.fredsinc.com.
Comments in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties that could
cause actual results to differ materially from those projected in the
forward-looking statements. These risks and uncertainties include, but are not
limited to, general economic trends, changes in consumer demand or purchase
patterns, delays or interruptions in the flow of merchandise between the
Company's distribution centers and its stores or between the Company's
suppliers and same, a disruption in the Company's data processing services,
costs and delays in acquiring or developing new store sites, and other
contingencies discussed in the Company's Securities and Exchange Commission
filings. Fred's undertakes no obligation to release revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unforeseen events, except as required
to be reported under the rules and regulations of the Securities and Exchange
Jerry A. Shore, 901-362-3733, Ext. 2217
Executive Vice President and
Chief Financial Officer
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