Fred's Reports December Sales
MEMPHIS, Tenn., Jan 08, 2009 (BUSINESS WIRE) -- Fred's Inc. (NASDAQ: FRED) today reported sales for the five-week fiscal
month of December and the 11-month period ended January 3, 2009.
Fred's total sales for the month were $201.6 million, down 4% from
$209.8 million in December 2008, reflecting the Company's previously
announced program to close 75 underperforming stores and 22
underperforming pharmacies this year. Excluding stores closed during
2008, total sales from ongoing stores increased 2% in December versus
the same month last year. Comparable store sales for the month were flat
versus a 1.8% decline in comparable store sales for December 2007.
Total sales for the year-to-date period increased 2% to $1.673 billion
compared with $1.648 billion in the year-earlier period. On a comparable
store basis, sales increased 2.2% through the first 11 months of fiscal
2008 versus a 0.4% gain in the year-earlier period.
Commenting on the announcement, Michael J. Hayes, Chief Executive
Officer, said, "December sales continued to reflect a tough economic
environment. Fred's consumable departments delivered positive comparable
results, offset by lower comparable sales in the more discretionary
departments, the result of which was flat comparable store sales for the
month. Because we have built and executed inventory and cost control
plans to address expected volatility in the economy and consumer
spending, ending inventories for December were on plan and 5% below last
year, and the Company remains within the forecasted financial range for
the fourth quarter. As we approach the close of the fiscal year, the
challenging strategic programs we initiated early in 2008 continue to
perform to plan and the Company is well positioned to start 2009."
Fred's Inc. operates 663 discount general merchandise stores, including
24 franchised Fred's stores in the southeastern United States. For more
information about the Company, visit Fred's Website at www.fredsinc.com.
Comments in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties that
could cause actual results to differ materially from those projected in
the forward-looking statements. These risks and uncertainties
include, but are not limited to, general economic trends, changes in
consumer demand or purchase patterns, delays or interruptions in the
flow of merchandise between the Company's distribution centers and its
stores or between the Company's suppliers and same, a disruption in the
Company's data processing services, costs and delays in acquiring or
developing new store sites, and other contingencies discussed in the
Company's Securities and Exchange Commission filings. Fred's
undertakes no obligation to release revisions to these forward-looking
statements to reflect events or circumstances after the date hereof or
to reflect the occurrence of unforeseen events, except as required to be
reported under the rules and regulations of the Securities and Exchange
Commission.
SOURCE: Fred's Inc.
Fred's Inc.
Jerry A. Shore, 901-362-3733, Ext. 2217
Executive Vice President and Chief Financial Officer
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