Fred's December Total Sales Increased 10%

Fred's total sales for the month increased 10% to $231.9 million from $210.7 million in December 2014. Excluding $8.0 million from last year's December sales related to 47 subsequently closed locations, total sales increased 14% for the month. Comparable store sales for the month rose 2.4% compared with a decline of 1.4% in the year-earlier period.

Fred's total sales for the first 11 months of 2015 increased 9% to $1.994 billion from $1.830 billion for the same period last year. Excluding sales of $71.7 million from stores closed mainly in late 2014, total sales increased 13% for the first 11 months of 2015. On a comparable store basis, year-to-date sales increased 1.5% versus a decline of 1.0% for the year-earlier period.

Commenting on the announcement, Jerry A. Shore, Chief Executive Officer, said, "We are pleased to report solid sales results for December, which reflected the success of our merchandising programs designed for the holiday season and, in the case of total sales, recent growth in our specialty pharmacy department. December comparable store sales were driven by strong general merchandise department sales, with increases in holiday gift-giving categories as well as continued balance in our sales mix across all categories. On the other hand, comparable sales for our retail pharmacy department were negatively affected in December by a very low incidence of cold and flu activity, which reduced December overall comparable store sales by approximately 125 basis points.

"As we enter the last month of fiscal 2015 and move into 2016, we do so with confidence built on the successful programs and process improvements we made during this past year," Shore continued. "Our team is well aligned to extend this success with additional initiatives in the coming year to drive stronger financial returns for fiscal 2016."

Fred's, Inc. and subsidiaries operate 659 discount general merchandise stores and three specialty pharmacy-only locations in 15 states in the southeastern United States.

Source: Fred's