Comparable-Store Sales at Fred's Worsen

   By Allison Prang 
 

Fred's Inc. (FRED) said Thursday sales worsened in the quarter as the company reported a larger loss amid less circular marketing.

The Memphis, Tenn.-based retailer said comparable-store sales fell 3.5% in its second quarter, compared to a 3% decline the same period last year. Most of that decline was attributed to a 6.1% drop in front-store sales, which Fred's said came from "a significant reduction in circular marketing." Retail pharmacy sales fell 0.5%.

Net sales at the company fell 4.3% to $419.7 million.

Fred's reported a quarterly loss of $32.3 million, compared to $29.5 million in the comparable quarter a year ago. The company's bottom line was impacted by a $9.4 million net loss from discontinued operations. In the comparable quarter a year ago, its net loss from discontinued operations was $600,000.

Fred's reported a net loss from continuing operations of 62 cents a share compared to a net loss of 77 cents a share in the year-ago period.

Fred's operates primarily in the southeastern U.S. and sells merchandise from small appliances to groceries and medicine. Pharmacy operations represent a significant chunk of overall sales.

Earlier this week, Fred's shares surged after Walgreens Boots Alliance Inc. (WBA) agreed to acquire patient prescription files and the related pharmacy inventory of 185 Fred's stores across 10 Southeastern states.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

September 13, 2018 07:09 ET (11:09 GMT)

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