MEMPHIS, Tenn. — Fred's on Thursday reported sales of $452.7 million, up 1% compared with the year-ago period, for the second quarter ended July 30. On a comparable-store basis, second-quarter sales decreased 0.4% versus an increase of 2.5% in the same period last year.
"July's sales performance was consistent with the first two months of the quarter as external economic factors, including high unemployment and reductions in government aid, continued to have a negative impact throughout the Southeast," stated Bruce Efird, Fred's CEO.
"Even though several of our Core 5 focus areas performed well, including pet and household supplies, the overall pressures of the economy continued to drive sales toward basic and consumable products," Efird added. "In spite of lower-than-expected sales and inflation-driven margin pressure, we now expect net income per diluted share for the second quarter to be flat compared with the same period last year."
During the period, Fred's opened one new store and pharmacy. Through the first half of the year, the company has opened four new stores and pharmacies, closed seven stores and pharmacies, and upgraded 114 stores as part of the Core 5 Program.