Fred's Offers Outlook Within Range Of Wall Street

MEMPHIS, Tenn. (AP) — Discount store operator Fred's Inc. on Thursday issued guidance for the third quarter and its full fiscal year within range of Wall Street expectations.

The company expects third-quarter profit of 18 cents to 21 cents per share. On average, analysts polled by Thomson Reuters expect profit of 20 cents per share.

Fred's also said it expects earnings per share of 73 cents to 80 cents for the fiscal year ending in January. Analysts expect profit of 77 cents per share.

"We anticipate discretionary spending will remain down, and strong promotional activity will continue," CEO Bruce A. Efird said in a statement.

Fred's expects total sales to increase 1 percent to 3 percent, with same-store sales ranging from flat to up 2 percent. Same-store sales, or sales at stores open at least a year, are an important retail performance indicator because they measure growth at existing stores rather than newly opened ones.

The retailer also said its second-quarter profit tripled as it cut expenses to offset a small sales decline.