Fred's (FRED) Feb. Comps Increase 0.8%

Fred's Inc. (NASDAQ: FRED) today reported sales for the four-week fiscal month of February, the first month of fiscal 2016, which ended February 27, 2016.

Fred's total sales for the month increased 12% to $171.1 million from $153.2 million in February 2015. Comparable store sales for the month rose 0.8% versus flat comparable store sales for the year-earlier period.

Commenting on the announcement, Jerry A. Shore, Chief Executive Officer, said, "We were pleased to see an ongoing trend of positive comparable store sales in January and strong growth in total sales for the month. In our pharmacy departments, the impact of specialty pharmacy on total sales was noteworthy, as was the positive performance in both sales and scripts, despite a continued mild cold and flu season in our retail pharmacies. In general merchandise, as we have seen in recent months, we again experienced a strong performance in spring seasonal, health and beauty aids, and in other categories where product assortments have been expanded and improved. While general merchandise sales also were negatively affected by the mild cold and flu season, delays in tax refunds early in the month, and generally lower tax refund amounts, we were pleased to see that the flow of tax refunds did accelerate late in the month.

"We remain encouraged by the momentum that continues to build across the Company," Shore added. "During February, we began the 2016 new prototype remodel program with five stores, a monthly pace we expect to maintain throughout most of the year. We also saw strong performance from the improvements made in 25 stores that benefited from competitive store closings during the month. We will provide more detail on our initiatives during our fourth quarter earnings conference call on March 23."

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