This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fred's Reports Third Quarter 2012 Results

Fred's, Inc. (NASDAQ: FRED) today reported financial results for the third quarter and nine months ended October 27, 2012.

For the third quarter ended October 27, 2012, Fred's net income totaled $6.6 million or $0.18 per diluted share compared with net income of $9.0 million or $0.24 per diluted share in the year-earlier period. As previously announced, the decline in net income for the quarter reflected the impact of a shift in layaway sales, unfavorable LIFO expense charges in the quarter and higher operating expenses. Fred's net income for the first nine months of 2012 totaled $23.1 million or $0.63 per diluted share compared with $23.6 million or $0.61 per diluted share in the prior year.

Fred's total sales for the third quarter of fiscal 2012 increased 1% to $450.6 million from $444.4 million for the same period last year. Comparable store sales for the quarter declined 2.5% compared with an increase of 1.5% in the third quarter last year. Fred's total sales for the first nine months of fiscal 2012 increased 3% to $1.422 billion from $1.381 billion for the same period last year. Comparable store sales for the first nine months of 2012 decreased 0.8% compared with a 0.7% increase for the same period last year.

Commenting on the results, Bruce A. Efird, Chief Executive Officer, said, "We were gratified to see general merchandise sales and traffic improve during the final month of the quarter in response to our increased marketing initiatives. The third quarter reflected the intensely challenging retail climate we face and the effects of the brand-to-generic shift on pharmacy sales throughout the quarter. Despite this negative impact on top-line sales, our pharmacy department produced strong results for the quarter, with growth in comparable prescription counts and increased gross margins.

"Management supports the Board's decision to issue a special dividend payable in December, which recognizes the quality and strength of our balance sheet and cash flows," Efird continued. "Our stores are ready and well stocked and our merchandising and marketing plans are in place to deliver great values for our customers in the holiday season ahead. In short, we believe Fred's remains well positioned for a solid finish to 2012, and that the Company will continue to generate momentum in the upcoming fiscal year."

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs