Fred's (FRED) March Comps Rose 1.8%

Fred's Inc. (NASDAQ: FRED) reported sales for the five-week fiscal month of March and the two-month year-to-date period ended April 2, 2016.

Fred's total sales for the month increased 11% to $214.4 million from $193.6 million in March 2015. Comparable store sales for the month rose 1.8% versus an increase of 1.9% for the year-earlier period.

Fred's total sales for the first two months of fiscal 2016 increased 11% to $385.8 million compared with $346.8 million for the same period last year. On a comparable store basis, year-to-date sales increased 1.3% versus an increase of 0.9% for the year-earlier period.

Commenting on the announcement, Jerry A. Shore, Chief Executive Officer, said, "We are pleased to report that total March sales increased at the high end of our guidance, while comparable stores sales came in near the midrange. Much of the total increase can be attributed to the April 2015 acquisition of EntrustRx specialty pharmacy. Next month, we begin cycling the acquisition and in May, total sales comparisons will be normalized. Regarding March comparable store sales, we continued to see progress throughout most areas of our business. Comparable sales were led by the strong performance in general merchandise departments across most categories, especially in health, beauty, personal care, apparel, spring seasonal and Easter holiday merchandise. Our traffic-driving initiatives for the pharmacy department continue to take hold, and for the second consecutive month, comparable scripts and sales were positive.

"We are off to a good start on the many initiatives we laid out in our earnings call last month," Shore continued. "We now have completed 10 store remodels and are pleased with the early results. We continue to roll out several upgrades in technology that will improve sales and margin while reducing expenses. Overall, the positive momentum continues to further enhance the well-being of our customers and generate stronger returns for our shareholders."

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