Fred’s Pharmacy Reports July Sales
August 03 2017 - 7:00AM
Business Wire
July comparable store sales decreased 0.1%
Comparable sales decrease of 0.3% in second
quarter, best of trailing four quarters
Fred’s, Inc. (“Fred’s Pharmacy” or the “Company”) (NASDAQ:FRED)
today reported sales for the four-week fiscal month of July, which
ended July 29, 2017.
Fred’s Pharmacy’s total sales for the month decreased 3.5%
year-over-year to $150.5 million from $155.9 million in July 2016.
The decrease in sales is related primarily to the closure of 39
underperforming stores in the first quarter. Total comparable store
sales for the month saw a decrease of 0.1%, compared with a 4.6%
decrease in comparable sales in the prior year period. Comparable
store sales for July included a negative 0.6% impact as a result of
the sale of low productive discontinued inventory versus July of
last year.
For the quarter ended July 29, 2017, Fred’s Pharmacy’s total
sales decreased 4.2% year-over-year to $507.4 million from $529.5
million in the same period last year; related primarily to the
shift from brand to generic scripts as well as the closure of
underperforming stores. Total comparable store sales for the
quarter decreased 0.3%, compared with a 2.0% decrease in comparable
sales in the prior year period. Comparable store sales for the
quarter included a negative 0.8% impact as a result of the sale of
low productive discontinued inventory versus second quarter last
year.
Michael K. Bloom, Chief Executive Officer, said, “While our
financial results have been slower to materialize than we had
anticipated, we are encouraged by our improving comparable store
sales and strong performance in Retail and Specialty Pharmacy.
Although slightly negative due to industry headwinds challenging
the front store consumables category, our overall comparable sales
for the second quarter represent the best quarterly performance in
the trailing four quarters. Our improving sales trends and the
strength of the pharmacy businesses demonstrate that our healthcare
transformation strategy is working. We are confident in our ability
to improve our financial performance and drive long-term growth and
profitability, and look forward to sharing more details about our
second quarter results in the coming weeks.”
About Fred’s Pharmacy
Tracing its history back to an original store in Coldwater,
Mississippi, opened in 1947, today Fred’s Pharmacy is headquartered
in Memphis, Tennessee, and operates 601 pharmacy and general
merchandise stores, which includes 14 franchised Fred’s Pharmacy
locations and an additional three specialty pharmacy-only
locations. With a unique store format and strategy that combines
the best elements of a healthcare-focused drug store with a
value-focused retailer, Fred’s Pharmacy stores offer more than
12,000 frequently purchased items that address the healthcare and
everyday needs of its customers and patients. This includes
nationally recognized brands, proprietary Fred’s Pharmacy label
products, and a full range of value-priced selections. The Company
has two distribution centers, one in Memphis, Tennessee, and
Dublin, Georgia.
For more information about the Company, visit Fred’s website at
www.fredsinc.com.
Forward-Looking Statements
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. A reader can identify
forward-looking statements because they are not limited to
historical facts or they use such words as "outlook," "guidance,"
"may," "should," "could," "believe," "anticipate," "plan,"
"expect," "estimate," "forecast," "goal," "intend," "committed,"
"continue," or "will likely result" and similar expressions that
concern the Company's strategy, plans, intentions or beliefs about
future occurrences or results. These risks and uncertainties
include, but are not limited to, those associated with the
Company's announced strategic plan, the success of announced
acquisition activities and future growth trends in businesses
acquired; 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; cyber-security threats;
costs and delays in acquiring or developing new store sites; and
the factors listed under "Risk Factors" in the Company's most
recent Annual Report on Form 10-K and any subsequent quarterly
filings on Form 10-Q filed with the Securities and Exchange
Commission. Forward-looking statements speak only as of the date
made. The Company 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170803005375/en/
Fred's PharmacyJason Jenne, 901-238-2787Executive Vice
President, Chief Financial OfficerorJoele Frank, Wilkinson Brimmer
KatcherEd Trissel / Dan Moore, 212-355-4449
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