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

Forgot your password?
Skip Navigation LinksHome >
VOL. 129 | NO. 153 | Thursday, August 07, 2014

Fred's July Sales Metric Up, Cuts Second-Quarter Outlook

AP

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

MEMPHIS (AP) – Fred's sales at stores open at least a year edged up 0.7 percent in July, helped by better customer traffic and stronger sales of some general merchandise.

But the discount retailer lowered its second-quarter guidance, in part because of costs at its pharmacy department.

Fred's July same-store sales growth was slower than the 2.5 percent rise that the Memphis, Tennessee-based company reported a year ago.

Sales at stores open at least a year is a key gauge of a retailer's health because it excludes results from locations recently opened or closed.

Fred's Inc. said Thursday that general merchandise sales increases were seen in categories including health aids, housewares, flooring, stationery, toys, auto and hardware and several consumable departments.

The pharmacy department also reported higher sales in July but its margins continued to be pressured by vendor cost increases on brand and generic drugs.

Fred's said that due to the cost increases the pharmacy department is facing as well as other costs, it now foresees a second-quarter loss between 15 cents and 20 cents per share. The guidance excludes reserves for the disposition of inventory and stores that don't fit its convenience center model. Its prior outlook was for an adjusted operating profit of 4 cents to 9 cents per share.

Analysts polled by FactSet predict a profit of 6 cents per share.

The company will report its second-quarter financial results on Aug. 28.

Total revenue climbed 4 percent in in July to $148 million.

In its fiscal second quarter, sales at stores open at least a year dipped 0.1 percent compared with a 2.2 percent increase in the prior-year period. Total revenue rose 2 percent to $490.6 million.

For the year to date, sales at stores open at least a year fell 1 percent. The figure climbed 0.5 percent a year ago. Total revenue for the year to date rose 1 percent to $988.9 million.

Fred's runs 704 discount general merchandise stores, including 21 franchised Fred's stores, in the southeastern U.S.

Copyright 2014 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 This material may not be published, broadcast, rewritten or redistributed.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 109 433 13,330
MORTGAGES 114 591 17,349
FORECLOSURE NOTICES 11 93 3,391
BUILDING PERMITS 0 366 30,930
BANKRUPTCIES 76 352 12,695
BUSINESS LICENSES 21 108 4,597
UTILITY CONNECTIONS 77 564 19,457
MARRIAGE LICENSES 29 151 4,060

Weekly Edition

Issues | About

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