Memphis, Tenn. Fred's Inc. said Thursday its second-quarter profit fell 66%, hurt by the cost of closing stores as part of a restructuring.
In February, Fred’s announced a strategic plan to improve profitability and operating margin. The plan included the closing of 75 underperforming stores in 2008.
The company earned $1 million in the three-month period ended Aug. 2. That compares with a profit of $3.1 million in the year-ago period.
Revenue rose 5% to $447.1 million from $424.6 million in the year-ago period. Meanwhile, same-store sales rose 4.9% in the quarter.
In the quarter, Fred's closed 50 stores and one pharmacy, and opened seven new stores and two new pharmacies.