» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 127 | NO. 150 | Thursday, August 02, 2012

Fred's July Revenue Figure Rises

AP

Print | Front Page | Email this story | Comments ()

MEMPHIS (AP) – Discount-store operator Fred's Inc. said Wednesday that a key revenue figure edged up in July, boosted by markdowns aimed at increasing customer traffic. The company also raised its earnings guidance for the second quarter, citing a tax settlement with the state of Tennessee.

Its shares rose almost 2 percent in late afternoon trading.

Fred's said revenue in stores open at least one year rose 1.2 percent during the four weeks ended July 28. Total sales for the month rose 5 percent to $136.7 million.

Fred's, based on Memphis, Tenn., said pet, household supplies and pharmacy categories were big sellers during the month, and the company marked down goods to drive traffic into stores.

For the second-quarter, total revenue rose 4 percent to $470.7 million from $452.7 million, while revenue in stores open at least a year slipped 1.0 percent.

Analysts expected $468.9 million, according to FactSet.

Fred's also said that it completed negotiations with the state of Tennessee to settle a tax matter, which will help offset costs related to store closings and July sales markdowns, in the second quarter.

Because of that, the company now expects earnings per share for the second quarter to be 17 cents to 19 cents, up from prior guidance of 15 cents to 17 cents per share. Analysts expect 15 cents per share.

Fred's Inc. operates 698 discount general merchandise stores, including 21 franchised Fred's stores, in the southeastern United States.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 85 354 12,626
MORTGAGES 113 438 16,470
FORECLOSURE NOTICES 21 98 3,290
BUILDING PERMITS 358 918 27,694
BANKRUPTCIES 55 276 10,490
BUSINESS LICENSES 18 120 4,204
UTILITY CONNECTIONS 78 429 16,350
MARRIAGE LICENSES 26 125 3,691

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.