Fred's Posts 4Q Profit On Fewer Charges

MEMPHIS, Tenn. (AP) — The retailer Fred's Inc. reported a profit Thursday for its fourth quarter, benefiting from fewer charges than a year ago.

The discount retailer and pharmacy chain, which is in the midst of a restructuring and recently named a new chief executive, also provided a first-quarter earnings outlook in range of analysts' estimates.

Fred's earned $2.3 million, or 6 cents per share, in the three months ended Jan. 31. That compares with a loss of $4.4 million, or 11 cents per share, a year earlier.

Quarterly results included 14 cents per share in charges related to legal settlements as well as store and pharmacy closings. The prior-year period had 25 cents per share in charges for the start up of the store closing effort.

Excluding the charges, net income was $7.8 million, or 20 cents per share.

Analysts forecast profit of 22 cents per share, according to a Thomson Reuters survey. Analysts' estimates typically exclude one-time items.