Fred's Posts Narrower Loss In Q2; Comps. Down 3.5% - Quick Facts

(RTTNews) - Fred's, Inc. (FRED) reported a second-quarter net loss from continuing operations of approximately $22.9 million, or $0.62 per share, compared to a net loss of $28.9 million, or $0.77 per share, for the same period in 2017.

Fred's second-quarter net sales decreased 4.3% to $419.7 million from $438.5 million, last year. Comparable store sales for the quarter decreased 3.5%. Comparable store sales were down 6.1% for the front store and down 0.5% in the retail pharmacy.

Fred's Interim CEO and CFO, Joe Anto, said, "We are continuing to make progress against our two main goals of eliminating our debt balance and returning to profitability by Q4 of this year. We recently announced an agreement with Walgreens Boots Alliance, Inc. (WBA) to sell pharmacy prescription files associated with 185 Fred's stores. This transaction should allow Fred's to almost entirely reduce the balance on our ABL Facility, allowing us to focus on returning our remaining business to profitability. We expect to close this transaction over the course of Q4."