Fred's June Comparable Store Sales Down 1.6%, To Impact Q2 Results - Quick Facts

(RTTNews) - Fred's Inc. (FRED) reported a decline in total sales as well as comparable store sales for the month of June and noted that the June figures will impact its second-quarter sales.

The company's total comparable store sales for the month of June 2017 decreased 1.6 percent, compared with a 1.3 percent decrease in comparable sales in the prior year period.

Comparable store sales for June included a negative 0.9 percent impact as a result of the sale of low productive discontinued inventory.

Fred's total sales for the month of June 2017 decreased 5.3 percent year-over-year to $197.5 million from $208.5 million in the year-ago period. The decrease in sales was related to the closure of 39 underperforming stores in the first quarter and continued pressure in the Front Store business.

Michael Bloom, Chief Executive Officer, said, "Our lower than anticipated June sales and the headwinds we are facing will impact our second quarter results, and we no longer expect sequential improvement from the first quarter. However, we still expect to achieve operational profitability in the fourth quarter of 2017."