Fred's Reports February Sales

MEMPHIS, Tenn.--(BUSINESS WIRE)-- Fred's Inc. (NASDAQ: FRED) today reported sales for the four-week month of February, the first month of fiscal 2015, which ended February 28, 2015.

Fred's total sales reflect the net closing of 62 locations in 2014 pursuant to the Company's reconfiguration plan. Excluding last year's February sales of $7.4 million from those closed locations, total sales increased 3% for the month. Fred's total sales for February, not adjusting the closed stores, decreased 2% to $154.1 million from $157.4 million in February 2014. Comparable store sales for the month were approximately flat versus a decrease of 2.2% in February last year.

Commenting on the announcement, Jerry A. Shore, Chief Executive Officer, said, "Prior to the poor weather that hit most of our markets during the last two weeks of the month, we were encouraged to see January's sales momentum continue into February. In addition to the cold weather product departments, other high-performing departments for February included health aids, hardware, toys, and As Seen on TV. Likewise our pharmacy department continued to post growth in scripts and sales, benefitting from ongoing expansion and growth of our specialty pharmacy division.

"In our upcoming fourth quarter earnings conference call, the management team will provide greater details regarding our initiatives to drive operating margin and front-end store gross profit," Shore continued. "These initiatives will complement our pharmacy programs in place for 2015."

During February, Fred's opened one Xpress pharmacy location.

Fred's operates 661 discount general merchandise stores, including 19 franchised Fred's stores, in the southeastern United States. For more information about the Company, visit Fred's website at www.fredsinc.com.

Comments in this news release that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. A reader can identify forward-looking statements because they are not limited to historical facts or they use such words as "outlook," guidance," "may," "should," "could," "believe," "anticipate," "plan," "expect," "estimate," "forecast," "goal," "intend," "committed," "continue," or "will likely result" and similar expressions that concern the Company's strategy, plans, intentions or beliefs about future occurrences or results. These risks and uncertainties include, but are not limited to, those associated with the Company's announced strategic plan, the ultimate terms of the reworked pharmacy distribution agreement, lease buyouts and the underlying assumptions and projections upon which they are based, as well as risks that intended results may not be achieved or may not occur as quickly as expected; general economic trends; changes in consumer demand or purchase patterns; delays or interruptions in the flow of merchandise between the Company's distribution centers and its stores or between the Company's suppliers and same; a disruption in the Company's data processing services; costs and delays in acquiring or developing new store sites; and the factors listed under "Risk Factors" in the Company's most recent Annual Report on Form 10-K and any subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made. Fred's undertakes no obligation to release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.

Fred's Inc.
Jerry A. Shore, 901-362-3733, Ext. 2217
Chief Executive Officer

Source: Fred's Inc.

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