Fred's Inc. (FRED) reported that total sales for the month of January 2010 decreased 1% to $125.0 million from $126.2 million in the previous year period. Comparable store sales for the month declined 2.0% versus a 1.9% decline in comparable store sales for January 2009.
For the fourth quarter, total sales increased 1% to $472.9 million from $469.4 million in the year-earlier quarter. Comparable store sales for the fourth quarter decreased 0.9% compared with a decline of 1.1% in the last year quarter. On average, 10 analysts polled by Thomson Reuters expected the company to report revenues of $474.09 million for the quarter.
Total sales for fiscal 2009 were $1.788 billion, down 1% from $1.799 billion in the previous year. Comparable store sales for 2009 rose 0.4% versus a 1.8% gain for the prior year.
Looking ahead, the company now expects earnings per share for the fourth quarter to be in the range of $0.14 - $0.16. Analysts estimate earnings of $0.19 per share for the quarter.
For the year 2009, the company now estimates earnings of $0.59 - $0.61 per share, a 40% to 45% increase over 2008. Analysts estimate earnings of $0.66 per share for the year.
For the year 2010, the company is optimistic that financial improvement will continue, with earnings per share reaching the range of $0.68 - $0.75 for 2010. The company anticipates continued consumer cautiousness through the first quarter and projects flat comparable store sales and earnings per share in the range of $0.15 - $0.20.
For comments and feedback: editorial@rttnews.com