NEW YORK (TheStreet) -- Shares of Fred's Inc.
(FRED) are declining this morning, down -2.76% to $14.62, after the discount retailer announced its plan to close 60 of its stores without pharmacies by the end of the year to free up capital to accelerate its pharmacy acquisitions.
Memphis-based Fred's said it would close more than 8.5% of its total of 704 stores after it reported a net loss in the second quarter of -$16.4 million in its yesterday.
The company said it is shifting to a business model that puts a heavier emphasis on its stores' pharmacy and convenience segments.
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Separately, TheStreet Ratings team rates FREDS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FREDS INC (FRED) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
data by YCharts
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