Memphis, Tenn. Fred’s, which is in the midst of restructuring, said on Thursday it earned $2.3 million in the three months ended Jan. 31, compared with a loss of $4.4 million a year earlier.
Sales dropped 5% to $469.4 million from $494.1 million a year ago, mostly due to store closings.
Fred's closed 74 stores and 23 pharmacies in 2008, while opening 21 stores and 11 pharmacies.
The closings also impacted same-store sales, which dipped 1.1% during the quarter.
For the year, earnings surged 55% to $16.6 million, from $10.7 million. Annual revenue rose to $1.8 billion, from $1.78 billion in the previous year.
Fred's operated 663 discount stores at the end of 2008.