Fred’s strong 2015 continues with October, Q3, YTD sales results

MEMPHIS, Tenn. — Fred’s has had a good year so far, according to its sales results from October, Q3 so far and the year-to-date the company released Thursday — with pharmacy and specialty pharmacy playing key roles in its sales growth

 

The company’s comparable store sales rose 2.3% in October, a reversal from the 1.4% drop it saw in the same period last year, and sales rose 13% in October to $164.4 million. October’s sales increases would have been higher (17%) if the company were to exclude 2014 sales from 47 stores it has since closed. 

 

“We are pleased to report that comparable store sales growth for October tracked with our expectations,” Fred’s CEO Jerry Shore said. “These results reflected continued strong top-line growth in our retail and specialty pharmacy departments and ongoing positive trends in general merchandise sales, with a balanced mix across all categories. Halloween sales were a key driver of general merchandise performance in October.”

 

For Fred’s third quarter so far, sales have risen 14% over last year to $541.2 million and comps rose 2.7% for the quarter. In terms of the company’s numbers to-date, it has netted $1.596 billion in sales — a 9% increase over last year’s first nine months. And where the company saw a 0.5% comps decrease in the first three-quarters of 2014, its comps have grown 1.5% this year so far. 

 

“Looking at the third quarter for a broader perspective, we saw clear momentum throughout all lines of business," Shore sad. “Specialty pharmacy sales of EntrustRx drove the strong total sales increase, while retail pharmacy department sales and scripts improved over the second quarter as we continue to implement the initiatives developed by our internal resources and A. T. Kearney.”

 

As the company heads into the holiday season and Q4, Shore said Fred’s is aiming to optimize its operations and finish the fiscal year with a strong financial showing.