Fred's (FRED) August Comps Fall 0.5%

Fred’s, Inc. (NASDAQ: FRED) today reported sales for the four-week fiscal month of August, which ended August 26, 2017.

Fred’s total sales for the month decreased to $153.0 million from $159.7 million in August 2016. The decrease in total sales is related primarily to the closure of 39 underperforming stores in the first quarter. Total comparable store sales for the month saw a slight decrease of 0.5%, compared with a 3.0% decrease in comparable sales in the prior year period. Comparable store sales for August were negatively impacted by the continued increase in Generic Dispensing Rate as well as a 0.5% impact from the sale of low productive discontinued inventory versus August of last year.

Michael K. Bloom, Chief Executive Officer, said, “Total comparable store sales for August show continued improvement from trends over the past 12 months, and overall pharmacy comps remained positive in August. Front Store showed positive comp growth in our General Merchandise, Healthcare and Beauty categories, which were offset by market headwinds in the core consumables categories. We are encouraged by the momentum resulting from the turnaround efforts that are under way.”

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