Fred's (FRED) Sees Q2 EPS Near Lower End of Guidance Range
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Price: $15.23 -0.07%
EPS Growth %: -33.3%
Financial Fact:
Dividends per common share: 0.06
Today's EPS Names:
ANF, DXLG, FL, More
EPS Growth %: -33.3%
Financial Fact:
Dividends per common share: 0.06
Today's EPS Names:
ANF, DXLG, FL, More
Trade FRED Now!
Fred's (Nasdaq: FRED) said it expects Q2 EPS to be at the lower end of its previously-issued 15-17 cent range. The Street is currently expecting Q2 EPS of 16 cents.
The company's CEO Bruce Efird, said, "Although we anticipated slightly negative comparable store sales for June, primarily due to the unprecedented size of the brand-to-generic shift in pharmacy sales now underway, typical sales patterns for these kinds of transitions did not occur. Historically, market changes occur over a period of six to nine months. However, in the most recent conversions, the changes occurred over a period of 30 to 45 days. Clearly, the impact of generic pricing on the major brand conversions was more dramatic than we projected. Despite the revenue impact of these new generics, the gross profit effect matched our plan for the month. Our general merchandise sales were disappointing both early and late in the month, compounded by weather, calendar shifts and the effect of holidays. On the positive side, several of our new initiatives in housewares, bath, and hardware departments performed as expected. Adjusting for the brand-to-generic shift in the pharmacy department, we now anticipate overall comparable store sales in July to be in the range of flat to a decline of 3%."
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The company's CEO Bruce Efird, said, "Although we anticipated slightly negative comparable store sales for June, primarily due to the unprecedented size of the brand-to-generic shift in pharmacy sales now underway, typical sales patterns for these kinds of transitions did not occur. Historically, market changes occur over a period of six to nine months. However, in the most recent conversions, the changes occurred over a period of 30 to 45 days. Clearly, the impact of generic pricing on the major brand conversions was more dramatic than we projected. Despite the revenue impact of these new generics, the gross profit effect matched our plan for the month. Our general merchandise sales were disappointing both early and late in the month, compounded by weather, calendar shifts and the effect of holidays. On the positive side, several of our new initiatives in housewares, bath, and hardware departments performed as expected. Adjusting for the brand-to-generic shift in the pharmacy department, we now anticipate overall comparable store sales in July to be in the range of flat to a decline of 3%."
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