Fred's (FRED) Comps Up 1.4% in December; Updates Q4 Outlook
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Financial Fact:
Provision for income taxes: -6.23M
Today's EPS Names:
NLY, CP, RUSHA, More
Financial Fact:
Provision for income taxes: -6.23M
Today's EPS Names:
NLY, CP, RUSHA, More
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Fred's, Inc. (Nasdaq: FRED) reported sales for the five-week fiscal month of December and the 11-month year-to-date period ended January 4, 2014.
Fred's total sales for the month were essentially flat at $209.5 million versus sales of $209.9 million in December 2012. Comparable store sales for the month increased 1.4% versus a decline of 4.2% in the same period last year.
Fred's total sales for the year-to-date period increased 1% to $1.805 billion compared with $1.782 billion for the same period last year. On a comparable store basis, year-to-date sales increased 0.9% versus a decline of 1.4% in the same period last year.
Commenting on the announcement, Bruce A. Efird, Chief Executive Officer, said, "While December sales were in the range of our expectations, they were driven primarily by the strong performance of our Pharmacy department, as the discretionary departments in general merchandising fell short of plan. The positive impact from our reconfiguration plan continued in December, driven mainly by our Hometown Auto & Hardware department. However, in spite of the success of our reconfiguration program, Fred's 2013 fourth quarter promotional strategy, which was centered on Black Friday, did not produce the incremental gains we expected. As a result, we now expect fourth quarter earnings per share to be flat to up modestly compared with the comparable 13-week period last year.
"To address the challenges and opportunities coming out of the fourth quarter," Efird added, "the merchandising and marketing team has been revamped and now will report directly to me. We have developed new pricing, marketing, inventory management and profit strategies that are designed to drive greater profitability throughout the year, with a key goal of re-energizing fourth quarter results in 2014. At the same time, we will continue to implement the successful elements of our reconfiguration plan, adding 150 to 200 conversions in 2014 and aggressively continuing our pharmacy expansion, which will reach 60% penetration of total stores by year end 2014."
In support of these strategic initiatives, the Company is promoting Jerry Shore to the position of Chief Operating Officer. Shore also will continue his responsibilities as Chief Financial Officer. As a result of this change, the Company will benefit more comprehensively from Shore's demonstrated financial and managerial expertise. Concurrently, CEO Bruce Efird will have the needed time to manage the Company's ongoing efforts to improve its general merchandise offering.
Additionally, the Board has retained BofA Merrill Lynch and Peter J. Solomon Company to review strategic opportunities to enhance shareholder value.
Fred's total sales for the month were essentially flat at $209.5 million versus sales of $209.9 million in December 2012. Comparable store sales for the month increased 1.4% versus a decline of 4.2% in the same period last year.
Fred's total sales for the year-to-date period increased 1% to $1.805 billion compared with $1.782 billion for the same period last year. On a comparable store basis, year-to-date sales increased 0.9% versus a decline of 1.4% in the same period last year.
Commenting on the announcement, Bruce A. Efird, Chief Executive Officer, said, "While December sales were in the range of our expectations, they were driven primarily by the strong performance of our Pharmacy department, as the discretionary departments in general merchandising fell short of plan. The positive impact from our reconfiguration plan continued in December, driven mainly by our Hometown Auto & Hardware department. However, in spite of the success of our reconfiguration program, Fred's 2013 fourth quarter promotional strategy, which was centered on Black Friday, did not produce the incremental gains we expected. As a result, we now expect fourth quarter earnings per share to be flat to up modestly compared with the comparable 13-week period last year.
"To address the challenges and opportunities coming out of the fourth quarter," Efird added, "the merchandising and marketing team has been revamped and now will report directly to me. We have developed new pricing, marketing, inventory management and profit strategies that are designed to drive greater profitability throughout the year, with a key goal of re-energizing fourth quarter results in 2014. At the same time, we will continue to implement the successful elements of our reconfiguration plan, adding 150 to 200 conversions in 2014 and aggressively continuing our pharmacy expansion, which will reach 60% penetration of total stores by year end 2014."
In support of these strategic initiatives, the Company is promoting Jerry Shore to the position of Chief Operating Officer. Shore also will continue his responsibilities as Chief Financial Officer. As a result of this change, the Company will benefit more comprehensively from Shore's demonstrated financial and managerial expertise. Concurrently, CEO Bruce Efird will have the needed time to manage the Company's ongoing efforts to improve its general merchandise offering.
Additionally, the Board has retained BofA Merrill Lynch and Peter J. Solomon Company to review strategic opportunities to enhance shareholder value.
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