Fred's (FRED) Comps Fell 3% in March
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Fred's Inc. (Nasdaq: FRED) today reported sales for the five-week month of March, which ended April 6, 2013.
Fred's total sales for the month decreased 2% to $190.4 million from $194.0 million in March 2012. Comparable store sales for the month decreased 3.0% compared with flat store sales in the same period last year.
Fred's total sales for the first two months of fiscal 2013 decreased 1% to $349.4 million compared with $352.9 million for the same period last year. On a comparable store basis, year-to-date sales decreased 2.3% versus a 0.4% decrease for the year-earlier period.
Commenting on the announcement, Bruce A. Efird, Chief Executive Officer, said, "As we discussed during our earnings call two weeks ago, we expected that March general merchandising sales would be adversely affected by unseasonably cool weather and the timing of the Easter holiday, both of which affected two of our key reconfiguration departments, Lawn & Garden and Seasonal. The pharmacy department continued to produce strong comparable script growth, but that was offset by the ongoing brand-to-generic shift, which resulted in lower overall pharmacy sales – a trend that we will see throughout most of the year. We are optimistic about April sales as the spring seasonal sales kick in and our operational expense initiatives take hold. All of these factors were anticipated as we developed our guidance for the first quarter."
Fred's total sales for the month decreased 2% to $190.4 million from $194.0 million in March 2012. Comparable store sales for the month decreased 3.0% compared with flat store sales in the same period last year.
Fred's total sales for the first two months of fiscal 2013 decreased 1% to $349.4 million compared with $352.9 million for the same period last year. On a comparable store basis, year-to-date sales decreased 2.3% versus a 0.4% decrease for the year-earlier period.
Commenting on the announcement, Bruce A. Efird, Chief Executive Officer, said, "As we discussed during our earnings call two weeks ago, we expected that March general merchandising sales would be adversely affected by unseasonably cool weather and the timing of the Easter holiday, both of which affected two of our key reconfiguration departments, Lawn & Garden and Seasonal. The pharmacy department continued to produce strong comparable script growth, but that was offset by the ongoing brand-to-generic shift, which resulted in lower overall pharmacy sales – a trend that we will see throughout most of the year. We are optimistic about April sales as the spring seasonal sales kick in and our operational expense initiatives take hold. All of these factors were anticipated as we developed our guidance for the first quarter."
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