Fred's (FRED) Reports January Comp Sales Declined 1.9%

Fred's Inc. (NASDAQ: FRED) reported comparable store sales for the month declined 1.9% versus a 1.2% decline in comparable store sales for January 2008.

Fred's total sales for the four-week month declined 5% to $126.1 million from $133.2 million in January 2008, reflecting the Company's closing of 74 underperforming stores and 23 underperforming pharmacies this year. Excluding stores closed during 2008, total sales from ongoing stores were flat in January versus the same month last year.

"Despite the challenging environment," Hayes continued, "Fred's was able to finish fiscal 2008 with a strong balance sheet, highlighted by a solid cash position, reduced inventory levels and no outstanding borrowings under our revolving credit agreement, and we continue to generate strong cash flows in line with our expectations. We realize that many of the economic challenges of 2008 will still be with us in 2009. In anticipation of these challenges, our leadership team, now directed by CEO Bruce Efird, has generated aggressive initiatives to combat pressures on margin, mix and sales, which will bode well for 2009."

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