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VOL. 128 | NO. 106 | Friday, May 31, 2013

Fred’s Net Income Rises 9 Percent

The Associated Press

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Discount retailer Fred’s Inc. said Thursday its first-quarter net income rose 9 percent, helped by a modest rise in sales and lower costs.

Memphis-based Fred’s Inc. reported its first-quarter net income rose 9 percent, helped by a modest rise in sales and lower costs, the discounter said Thursday. A customer shops at the Collierville Fred’s at 450 U.S. 72. 

Daily News File/Lance Murphey

The results topped Wall Street predictions, and shares rose in morning trading.

For the three months ended May 4, Fred’s earned $11.4 million, or 31 cents per share, up from $10.5 million, or 28 cents per share, in the 2012 first quarter.

Revenue totaled $501.5 million compared with $500.5 million a year ago.

Analysts, on average, expected a profit of 27 cents per share on $499.5 million in revenue, according to FactSet.

The Memphis-based company said its revenue at stores open at least a year fell 1.3 percent. The metric is a key measure of a retailer’s health, because it excludes sales at stores that recently opened or closed.

Fred’s said it remains “guardedly optimistic” about the second quarter. It projected a profit of between 6 cents and 9 cents per share on sales growth of between 2 percent and 4 percent. Based on the company’s prior-year results, the guidance implies revenue of between $480.2 million and $489.6 million for the current quarter.

Analysts expect earnings of 10 cents per share on $481.6 million in revenue.

The company also backed its full-year profit prediction for earnings of 77 cents to 88 cents per share, while analysts expect earnings of 82 cents per share.

Shares of Fred’s rose 84 cents, or 5.5 percent, to $16.04 in morning trading. The stock has changed hands between $12.30 and $16.08 in the past 52 weeks, and is up about 20 percent since the start of the year.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 65 366 17,721
MORTGAGES 70 417 23,068
FORECLOSURE NOTICES 15 91 4,519
BUILDING PERMITS 210 932 42,157
BANKRUPTCIES 62 299 16,691
BUSINESS LICENSES 19 80 5,781
UTILITY CONNECTIONS 49 305 25,174
MARRIAGE LICENSES 16 96 5,381

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