Fred's Reports 10% Higher May Sales

MEMPHIS, Tenn.--(BUSINESS WIRE)--

Fred's Inc. FRED today reported sales for the four-week month of May, which ended May 30, 2015.

Fred's total sales for the month of May increased 10% to $166.9 million from $151.4 million in May 2014, reflecting the first full month sales contribution from the Company's recent acquisition of the EntrustRx specialty pharmacy operations. Excluding $6.1 million from last year's May sales for 56 closed locations, total sales increased 15% for the month. Comparable store sales for the month increased 0.3% compared with a 0.4% decrease in the same period last year.

Fred's total sales for the first four months of fiscal 2015 increased 4% to $676.0 million compared with $649.7 million for the same period last year. Excluding sales of $27.9 million from closed stores in 2014, total sales increased 9% for the first four months of 2015. On a comparable store basis, year-to-date sales increased 0.6% versus a 1.5% decrease for the year-earlier period.

Commenting on the announcement, Jerry A. Shore, Chief Executive Officer, said, "We are pleased with the Company's solid sales growth in the month of May, meeting plan in both total and comparable store sales. This was significant considering that the fiscal month of May did not include the first day of the month. We anticipate June sales to reflect the benefit of this calendar shift. This progress sets the stage for a cycle of double-digit sales growth for the Company for the remainder of the year.

"As we outlined in our recent conference call, we expect to drive higher sales and traffic in the second quarter through pharmacy expansion, as well as general merchandise and supply chain initiatives that are progressing throughout the Company," Shore continued. "Our team remains focused on emerging opportunities to enhance growth and strengthen profitability in the future."

During May, Fred's opened one Xpress pharmacy location and converted one Xpress pharmacy location into an existing full-service location.

Fred's operates 663 discount general merchandise stores and three specialty pharmacy-only locations in the southeastern United States. For more information about the Company, visit Fred's website at www.fredsinc.com.

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 ultimate terms of the reworked pharmacy distribution agreement, lease buyouts and the underlying assumptions and projections upon which they are based, as well as risks that intended results may not be achieved or may not occur as quickly as expected; 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; 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. Fred's 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150604005594/en/