Fred's Inc. (FRED) reported that its first-quarter net income increased 9.1% to $11.4 million last year's $10.5 million. Earnings per share increased 10.7% to $0.31 for the first quarter from $0.28 for the same period last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.
Total sales for the first quarter of fiscal 2013 increased 0.2% to $501.5 million from $500.5 million for the same period last year. Eight analysts had consensus revenue estimate of $499.41 million for the quarter. Comparable store sales for the quarter declined 1.3% versus a decrease of 0.4% for the first quarter last year.
For the second quarter of 2013, the company expects earnings per share to be in the range of $0.06 to $0.09 compared with $0.17 last year. Last year's results included $0.12 per share due to a one-time favorable tax rate benefit. Comparable store sales are expected to be approximately flat in the second quarter. Total sales for the second quarter are expected to increase in the range of 2% to 4%. Analysts expect the company to report earnings of $0.10 per share on revenues of $481.59 million for the second-quarter.
The company continues to expect total earnings per share for fiscal 2013 to be in the range of $0.77 to $0.88. Analysts expect the company to report earnings of $0.82 per share for fiscal 2013.
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