Fred's Reports July Sales
MEMPHIS, Tenn. -- August 7, 2013
Fred's Inc. (NASDAQ: FRED) today reported sales for the four-week fiscal
month, second quarter and six-month period ended August 3,2013.
Fred's total sales for the month increased 4% to $142.2 million from
$136.8million in July 2012. Comparable store sales for the month increased
2.5% on top of an increase of 1.2% in the same period last year.
Fred's total sales for the second quarter of fiscal 2013 increased 2% to
$482.3 million compared with $470.8 million for the same period last year. On
a comparable store basis, second quarter sales increased 2.2% versus a decline
of 1.0% in the same period last year.
Fred's total sales for the first six months of fiscal 2013 increased 1% to
$983.8 million compared with $971.3 million for the same period last year. On
a comparable store basis, year-to-date sales increased 0.5% versus a decrease
of 0.5% in the same period last year.
Commenting on the announcement, Bruce A. Efird, Chief Executive Officer, said,
"July sales marked a continuation of positive trends in comparable store sales
as both general merchandising and the pharmacy departments contributed equally
to the month's increase, a balance we plan to maintain for the remainder of
the year. Notably, the pharmacy department experienced both comparable sales
and scripts increases for the second consecutive month, while the increase in
general merchandising reflected effective promotions to drive traffic. Our
second quarter sales also underscore the impact of our reconfiguration plan
initiatives, most notably with our expanded Hometown Auto & Hardware
department – the first phase of our space productivity plan, and our efforts
to leverage new opportunities in the pharmacy department. Given our progress
during the second quarter, we remain confident that the quarter's earnings
will be in the range previously forecasted."
During the second quarter, Fred's opened two new store locations, closed 20
stores and opened 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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