Fred's (FRED) May Comps Rose 0.3%

Fred's (NASDAQ: FRED) reported sales for the four-week month of May, which ended May 30, 2015.

Fred's total sales for the month of May increased 10% to $166.9 million from $151.4 million in May 2014, reflecting the first full month sales contribution from the Company's recent acquisition of the EntrustRx specialty pharmacy operations. Excluding $6.1 million from last year's May sales for 56 closed locations, total sales increased 15% for the month. Comparable store sales for the month increased 0.3% compared with a 0.4% decrease in the same period last year.

Fred's total sales for the first four months of fiscal 2015 increased 4% to $676.0 million compared with $649.7 million for the same period last year. Excluding sales of $27.9 million from closed stores in 2014, total sales increased 9% for the first four months of 2015. On a comparable store basis, year-to-date sales increased 0.6% versus a 1.5% decrease for the year-earlier period.

Commenting on the announcement, Jerry A. Shore, Chief Executive Officer, said, "We are pleased with the Company's solid sales growth in the month of May, meeting plan in both total and comparable store sales. This was significant considering that the fiscal month of May did not include the first day of the month. We anticipate June sales to reflect the benefit of this calendar shift. This progress sets the stage for a cycle of double-digit sales growth for the Company for the remainder of the year.

"As we outlined in our recent conference call, we expect to drive higher sales and traffic in the second quarter through pharmacy expansion, as well as general merchandise and supply chain initiatives that are progressing throughout the Company," Shore continued. "Our team remains focused on emerging opportunities to enhance growth and strengthen profitability in the future."

During May, Fred's opened one Xpress pharmacy location and converted one Xpress pharmacy location into an existing full-service location.

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