Fred's (FRED) March Comps Rose 1.9%

Fred's (NASDAQ: FRED) reported sales for the five-week month of March and the two-month year-to-date period ended April 4, 2015.

Fred's total sales for March increased 0.3% to $191.7 million from $191.0 million in March 2014. Fred's total sales for the prior year reflected the net closing of 62 locations in 2014 pursuant to the Company's reconfiguration plan. Excluding last year's March sales of $8.4 million from those closed locations, total sales increased 5% for the month. Comparable store sales for the month increased 1.9% compared with a decrease of 1.2% in March of last year.

Fred's total sales for the first two months of fiscal 2015 decreased 1% to $344.9 million compared with $348.5 million for the same period last year. Once again, excluding sales of $15.8 million from closed stores for the comparable two-month year-to-date period in 2014, total sales increased 4% for the same period in 2015. On a comparable store basis, year-to-date sales increased 0.9% versus a 1.7% decrease for the year-earlier period.

Commenting on the announcement, Jerry A. Shore, Chief Executive Officer, said, "We are pleased that March sales were at the high end of our guidance, as expressed in our recent year-end conference call. We ended the month with strong Easter product sales in toys, candy, and giftware, and our pharmacy department continued to post strong revenue and comparable script growth in March. At the same time, we were negatively affected in spring seasonal and Lawn & Garden product categories due to the port strike and wet weather during March. We expect that these sales will rebound in the upcoming months as spring merchandise is received.

"With the management team now in place, we expect to continue strengthening our general merchandise business going forward," Shore continued. "Additionally, the pharmacy team is working toward the completion of our recently announced acquisition of EntustRx specialty pharmacy operation and Reeves-Sain Drug Store, and integrating its resources and experience throughout our pharmacy operations."

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