Fred's (FRED) August Comps Increase 1.2%

Fred's Inc. (NASDAQ: FRED) today reported sales for the four-week fiscal month and seven-month year-to-date period ended August 29, 2015.

Fred's total sales for the month increased 12% to $165.6 million from $147.2 million in August 2014. Excluding $5.6 million from last year's August sales related to 54 subsequently closed locations, total sales increased 17% for the month. Comparable store sales for the month increased 1.2% on top of a 2.3% increase in the year-earlier period.

Fred's total sales for the year-to-date period increased 7% to $1.221 billion from $1.137 billion for the same period last year. Excluding sales of $45.1 million from stores closed mainly in late 2014, total sales increased 12% for the first seven months of 2015. On a comparable store basis, year-to-date sales increased 0.8% versus a decline of 0.6% for the year-earlier period.

Commenting on the announcement, Jerry A. Shore, Chief Executive Officer, said, "We are pleased with the Company's solid sales performance in August, as total and comparable store sales were in line with the outlook we discussed on our earnings call last week. These results reflected improved sales in our pharmacy department, both specialty and retail, as well as continued progress in general merchandise departments, which faced tough comparisons against August last year. Strong general merchandise departments included back-to-school categories of stationery and apparel, as well as health and beauty, toys, and domestics.

"Looking ahead," Shore continued, "we expect to see a stronger total and comparable store sales performance in September versus the same month last year as our merchandising and marketing programs continue to gain momentum, we expand our pharmacy department marketing, and as specialty pharmacy grows. We will continue to make these changes throughout the total store, as we discussed in our recent call, which will produce stronger growth and profitability in the third quarter and beyond."

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